Private Equity Podcast: Karma School of Business Private Equity’s Resilience and Q2 2025 Economic Trends
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Aug 6, 2025 In a rapidly changing economy, private equity firms have shown remarkable resilience and adaptability. Insights reveal how these firms navigate disruptions using strategic decision-making frameworks like OODA loops. Key trends include a surge in technology investments, particularly in AI, along with shifting consumer sentiments. The discussion also touches on the impact of tariffs on manufacturing and trade, while a positive outlook for future growth signals increasing market activity. It's a compelling look at how private equity is poised for long-term success.
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Economy's Stop-and-Go Resilience
- The economy has been in a perpetual stop-and-go disruption pattern since COVID.
- Despite setbacks like inflation and tariffs, the economy shows surprising resilience and signs of entering a growth cycle.
OODA Loop in Private Equity
- Private equity firms navigate disruptions using the OODA loop framework: observe, orient, decide, act.
- This adaptive process allows continuous adjustment to rapidly changing economic events.
April 2 Tariffs Shock Economy
- The April 2nd tariffs shocked businesses causing a sharp halt in manufacturing and private equity activity.
- The S&P manufacturing PMI dropped to neutral, consumer sentiment plunged, and market volatility spiked.