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Buyout firms’ returns: The image may not reflect the reality

A booming leveraged finance market has raised questions about the industry’s commitment to the operational improvement model

Buyout firms have long claimed they produce better companies. It is an assertion that became particularly pronounced in their marketing and investment strategies post-crisis, from 2009.

Increasingly concerned about the ability to generate superior returns during the downturn, swathes of operating partners - industry specialists dedicated to hands-on transformation of portfolio companies - joined some of Europe's biggest private equity houses.

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