In this 1 Hour and Q&A lecture at the Miami Herbert business school, Steve Kaplan of Jefferies Financial Group, “What Do We Know About Private Equity Performance?” Guest Lecture by Steve Kaplan at Miami Herbert, Private Equity has switched its investment priority. Instead of expense reduction, to Operations Optimization. This matches our objectives at Executive Outliers. To optimize operations, we see that the bottleneck in underperforming businesses is IT Operations. By opening the bottleneck in IT operations, we see how exponential equity growth becomes possible.
In his lecture, Steve Kaplan reviews the private equity funds covering 2000 to 2015: top private equity firms, focused on operations efficiency and effectiveness, outperform the S&P by 70%. The bottom fund equals the performance of the S&P. This makes sense to us. We’ve seen mid-market businesses grow 5 times in five years when they focus on IT operations versus cost reduction. We now believe that the formula is exponential equity growth=(Mission X Business operations)X Technology Alignment.
If you are a business owner or a business investor, we can show you how to optimize the weakest link in the operations change.
James Murray is a Business Technology Architect & Equity Growth Advisor in the Seattle area with over 30 years of experience. In 2008, James founded Executive Outliers, a business consulting company that specializes in helping mid-sized organizations to achieve exponential equity growth by leveraging technology.