The importance of culture and its impact on private equity strategy and returns has been a growing development over the past couple of years. As PE investment returns have lagged those of the stock market in the US, firms are feeling pressure to improve and deliver stronger results. This fact combined with some high-profile private company debacles, in large part due to cultural toxicity and leadership miscues, underscores the urgent need for PE sponsors and portfolio companies to prioritize a focus on culture.
