Evolving Strategies in Private Equity

This chapter examines the transformation of private equity practices, particularly focusing on KKR's shift from traditional leveraged buyouts to a model that emphasizes long-term ownership of investments. It discusses the implications of this strategy for the firm's earnings and its position within the financial landscape, drawing comparisons to Warren Buffett's methods. The conversation highlights the need for private equity firms to adapt to changing market conditions by focusing on revenue-generating businesses rather than relying solely on management fees.