Value creation

As competition intensifies and leverage-driven returns fade, Senior Managing Director Jon Salon explains how British Columbia Investment Management Corp. is reshaping its strategy to get closer to portfolio companies — starting at due diligence.

Investments in software, IT solutions and tech-enabled services have proven resilient driven by recurring-revenue models.

PE firms are pursuing smaller, underdeveloped businesses in the lower mid-market as they aim to drive long-term value creation in a way that financial engineering can no longer guarantee.

Gone are the days of financial engineering. The current environment requires a hands-on integrated operating team.

PE firms use more leverage, while strategics do more with internal operations.