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by xg15 1123 days ago
> private equity actually solves that problem.

How does it solve that problem?

1 comments

Private equity owners often have less short term incentives because their funds are usually 10 years long.

On average, an investment from purchase to exit may take ~5 years.

Whereas a public company with large institutional owners will have to respond to market feedback in real-time, i.e they are more likely to follow the herd if institutions (pension funds) demand a shift in industry trends (ie ESG). Whereas, private equity have no such concerns.