Adding Value through Capital Infusion in Private Equity Funds

Private equity funds partner with finance firms to optimize fund management, particularly during the value optimization phase where companies are sold to provide returns to investors. Finance firms provide additional capital for investing in portfolio companies, primarily used for add-on investments. This partnership is crucial in the current financial landscape where two-thirds of product defense investments are add-ons. Finance firms also offer leverage to fund managers, enhancing the benefits for borrowers in finance.