Evidence

The NBER summary "The Economic Effects of Private Equity Buyouts" reviews about 9,800 buyouts of US companies between 1980 and 2013. The study finds that private equity outcomes are not uniform; they vary by deal type, macroeconomic conditions and credit conditions.

One documented operating result is that labor productivity at target firms rose by an average of around 8 percent relative to control firms. Employment effects differed materially across transaction types: private-to-private deals developed differently from public-to-private deals or divisional buyouts.

Our view

Our view is that this distinction matters. Private equity should not be explained only through purchase price, leverage and exit. The decisive question is whether operational work happens after closing: on productivity, sales, procurement, technology, reporting, governance and capital structure.

For L.P.E.I., operational involvement is therefore not an add-on. It is the core. An investor can create value when capital is combined with structure, metrics, project management and specialized expertise.

Our interpretation: In markets such as energy, water, food and digital infrastructure, capital alone is not enough. An investment becomes a resilient asset only when site analysis, regulatory work, supply chains, offtake structures, monitoring and operating competence work together.

Evidence / sources: The buyout figures and findings are based on the NBER summary "The Economic Effects of Private Equity Buyouts". The sections under "Our view" are L.P.E.I.'s interpretation of these facts.