Creating Value Now
The new, more cautious environment has stripped away the flash and dash of financial engineering. It is now requiring firms to deliver value to their investors the old-fashioned way, by investing prudently in companies with the potential to grow and applying well-studied improvements that foster better returns."Private equity today has changed. You have to operate businesses; you have to make them better; you have to have a long-term view in value creation," says Scott D. Evans '99, managing partner with Guardian Capital Partners. "You can't flip a business as easily as you did in the past."