Why fund managers need to stay focused on cost management

'Rarely a primary focus for private equity managers'

At a time of considerable economic and market uncertainty, many investors are focused on driving returns from their investments in growing businesses.

However, some private equity fund managers could be missing out on an opportunity to increase enterprise value in their portfolios by taking a more granular approach to cost management. A study by Oxford Economics found that a flow of £4.1bn of venture capital and angel investment to sustain businesses and jobs the UK in 2015 generated GDP of £15bn.  In most cases, such investments are designed to help profit-making businesses to scale up, so they can do more of the same and generate value as they do so. Are private equity blowouts good for investors? While cost management impac...