How does the time horizon and focus of Private Equity (PE) generally differ from that of Investment Banking (IB) advisory work?
Answer
PE shifts focus to owning and operating a company over several years to improve its value before an exit, unlike the short-term deal cycles of banking.
In Private Equity, the focus moves from advising on a sale to actively owning and operating a company for a longer period to enhance its value prior to an exit, contrasting with the intense, short-term transaction cycles typical of investment banking.
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