Press Releases

The HEC-Dow Jones Private Equity Fitness RankingTM by Prof. Oliver Gottschalg

3 May 2010

The HEC-Dow Jones Private Equity Fitness RankingTM lists the Top 25 PE firms in terms of theircompetitive fitness, specifically, their expected ability to yield a superior performance over the next 5-10years. With this ranking, Professor Gottschalg answers the question: “Which firms are best positioned togenerate strong long-term performance in the future?”

Private equity is notorious for being opaque and access to any data continues to prove difficult. In particular,little is known about the most important performance drivers of the industry and the competitive positioningof the key private equity firms. In November 2009, HEC Paris and Dow Jones published the first-everPrivate Equity Performance RankingTM of global PE firms in the Wall Street Journal, Financial News andPrivate Equity News based on an innovative aggregated measure of past performance to identify and rankthe top 10 GPs worldwide.

Now Oliver Gottschalg presents the second, complementary ranking that analyzes the world’s leading PEfirms in terms of their “competitive fitness”. It evaluates each firm’s competitive positioning based on 10different empirically validated criteria and then derives an overall future competitiveness score based on thehistoric link between firm performance and each of these criteria. Collectively, these criteria capture someof the most relevant drivers of value creation, including scale, quality of deal flow, ability to time debt andequity markets, and strategic positioning.

“This study builds on over 10 years of empirical research. Supported by the HEC Foundation, it sheds lighton the fundamental success factors of a notoriously secretive industry and points to the PE Firms that aremost likely to yield a superior performance even in a difficult economic environment”, says ProfessorGottschalg.

Oliver Gottschalg is associate professor of strategy and business policy at HEC Paris. He serves as academic directorof the TRIUM Global Executive MBA, director of the Entrepreneurship Track in the HEC MBA program and teachescourses on strategy, entrepreneurship, business plan design and management buyouts. His current research focuses onthe strategic logic and the performance determinants of private equity investments.

About HEC Paris
A leader in Europe, HEC Paris specializes in management education and research.HEC Paris offers a full, unique range of courses to the leaders of tomorrow: Masters Degrees, MBA, PhD,Executive MBA and Trium Global Executive MBA.

Founded in 1881, HEC Paris has a permanent faculty of 105 professors, 4000 students on its campus (40% ofwhom are international) and over 8700 managers and executives trained in executive education programs each year.HEC Paris has been ranked #1 Business School in Europe by the Financial Times for the past four

Press Contact, HEC Paris: Elisabeth de Réals +33 1 39 67 94 23

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