PEI’s Changemakers on the future of private equity

How would you like to see private equity evolve over the next 21 years?

“I want to see GPs maintain their core values amidst growth. I believe firms must build public trust – and ensure value-creation models meet the pressing business and social needs”
Joseph Rice, co-founder, CD&R

“The professionalism of the PE industry must be combined with a purpose-driven investment approach making the world a better place. Impact investing is a huge opportunity and a moral obligation”
Jan Ståhlberg, founder and managing partner, Trill Impact

“We would like to see a more flexible approach to time horizons… Giving portfolio companies the opportunity to stay private for longer to deliver sustainable change across their sectors can create more value”
David Blood, founding partner and senior partner, Generation Investment Management

“I would like to see the industry contribute more fully across the whole economy and allow more people access to what PE can do. Entrepreneurs should view PE as a normal part of how they look to grow their company”
Wol Kolade, managing partner, Livingbridge

“For private equity to be a true force for good in the economy, including via broad-based ownership. PE has the potential for massive impact given how many jobs, facilities, etc, we all oversee”
Pete Stavros, partner and co-head of Americas private equity, KKR

“One exciting development in private equity is the democratisation of access. Alternatives are opening to private investors and we expect this to be a meaningful channel for raising capital in the future”
Jeremy Coller, chief investment officer, managing partner and founder, Coller Capital

How would you shake up the private equity industry in one way going forward?

“Refocus the industry’s purpose. Partnering with companies to propel growth and stakeholder impact is an important opportunity. It’s exciting – and I believe the intrinsic value goes far beyond capital gains”
Joseph Rice, co-founder, CD&R

“We would love to see a collective commitment to creating an incredible technology experience for all constituents in this ecosystem, with full digitisation of the value chain to increase efficiency”
Lawrence Calcano, chairman and CEO, iCapital

“GPs and LPs need to collaborate to solve the systematic challenges we face. ESG is one of the rare corners of finance where you don’t win by going it alone”
Megan Starr, global head of impact, Carlyle

“Make fundraising more straightforward. If we can make that process more efficient and transparent, that would benefit both LPs and GPs”
Wol Kolade, managing partner, Livingbridge

“The PE industry must take the responsibility to steer investment capital to investments benefiting future generations more seriously. Investors will require it and that is where the returns will be”
Jan Ståhlberg, founder and managing partner, Trill Impact

“Improve the assessment of returns. Lessen the focus on IRR, which is a flawed metric and can provide the wrong incentives. Let’s also isolate investment ‘alpha’ from market ‘beta’ ”
Pete Stavros, partner and co-head of Americas private equity, KKR