Capitalizing on opportunities in turbulent times requires agility and entrepreneurial management — the attributes that made PE so successful in the early years.
Have the vision to see what others cannot
In uncertain economic times, when capital is scarce, PE has a significant role to play. The industry often steps up as the sole source of capital in times of need, as we have discussed. Often, PE firms take contrarian viewpoints and invest in the face of negative growth trends. This is the specialty of turnaround firms like Sun Capital. BankUnited is a great example of this too.
The Blackstone Group, The Carlyle Group, Wilbur Ross & Co., and others bought BankUnited from the FDIC in 2008. After three years of work, it is now one of the most profitable banks in the US and went public in 2011.
This is representative of an entrepreneurial mindset that has become more mainstream as the PE industry has matured — part of a secular trend underway before the recession, but that has rapidly accelerated over the last few years.
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