Summary of Private-Equity Minority Investments

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

Private-Equity Minority Investments summary
Start getting smarter:
or see our plans

Rating

8 Overall

8 Applicability

8 Innovation

8 Style


Recommendation

Taking a minority shareholding is becoming more common for large private equity (PE) funds, according to Boston Consulting Group professionals Antoon Schneider and Cristina Henrik. As PE firms seek to deploy roughly $1.2 trillion of uninvested capital, they’re more open to atypical deals, while sellers like the control they retain and the know-how they gain from minority investors. However, PE funds need to do their homework to ensure the success of their minority stakes. getAbstract recommends this study’s insights on this little-reported phenomenon to private equity investors as well as to companies considering working with them.

In this summary, you will learn

  • Why minority investments are growing as a proportion of private equity deals,
  • Why buyers and sellers might prefer minority stakes, and
  • What approaches private equity firms can take to help ensure success in minority shareholdings.
 

About the Authors

Antoon Schneider is a managing director at the Boston Consulting Group, where Cristina Henrik is a principal.

 

Summary

Large private equity (PE) funds are increasingly taking minority stakes in target companies. Since 2008, the proportion of deals involving minority investments has averaged 27%, compared to 13% between 2004 and 2007. In Asia and Europe, minority ownership appeals to the large number of family-owned ...

More on this topic

By the same authors

Private Equity Is Hot but Not Overheating
Private Equity Is Hot but Not Overheating
7
Why Brexit Offers Opportunities for Private Equity
Why Brexit Offers Opportunities for Private Equity
8
A Mile Wide or a Mile Deep?
A Mile Wide or a Mile Deep?
8

Customers who read this summary also read

Capitalizing on the New Golden Age in Private Equity
Capitalizing on the New Golden Age in Private Equity
8
Sovereign Wealth’s Hunt for the Next Unicorn
Sovereign Wealth’s Hunt for the Next Unicorn
8
Getting from Diversity to Inclusion in Economics
Getting from Diversity to Inclusion in Economics
8
The Impact of US Tax  Reform on Corporate Strategy and M&A
The Impact of US Tax Reform on Corporate Strategy and M&A
8
The Stock Market Loophole That Screws the Little Guy
The Stock Market Loophole That Screws the Little Guy
9
Stabilizing an Unstable Economy
Stabilizing an Unstable Economy
8

Related Channels

Comment on this summary