Private equity giants are increasingly turning to hands-on management of the companies they own as financial strategies alone are no longer sufficient. With rising interest rates and a slowdown in the deals market, firms like Goldman Sachs and Blackstone are bringing in seasoned industry veterans to boost operational performance. 

This shift focuses on enhancing profitability through measures like improving margins and increasing cash flow, rather than relying on the traditional method of multiple expansion. 

Private equity firms are also extending the holding periods of their investments, driven by the need to deliver returns to investors amidst a tougher economic climate. Companies are placing a stronger emphasis on building long-term strategic growth plans. 

Finsum: As interest rates and inflation rise, private equity is evolving to emphasize deeper involvement in company operations rather than relying solely on financial solutions.