When Steve Sloan, managing director at private equity firm Everest Group International is negotiating to buy a company these days, the selling family is looking for more than just money, he says. “They also want to know how we are going to grow the company,” Sloan says.

The example underscores a shift in private equity, away from a model in which a firm acquired a company, monitored it, then sold it and made money, to a more-involved approach, in which management teams and investors work together to add value to the business.  In order for that to work, PE firms need to engage the management teams of their portfolio companies, panelists said at the Axial Concord 2014 conference, which took place in New York on Sept. 30.

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