Vinay Ghai, Managing Director in Baird’s Global Financial Sponsors Group, recently shared his perspective with Real Deals on how some private equity firms have pivoted from value investing to acquiring best-in-class businesses.

Vinay claims growth has become one of the key drivers of returns on investments. He comments, “This has manifested itself in businesses that are exhibiting strong growth and are seen to be the highest quality, getting the highest amount of multiple expansion in the last five years.”

As firms shift their attention away from some of the poorer performing assets, Vinay highlights how firms are moving from “fixing up companies” and are instead using their expertise on “giving good companies an upgrade.”

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