Private equity is dead — long live private equity

What is the cause of many private equity funds in the digital age making are making the wrong investment decisions and missing out on attractive investment opportunities?
leave it to the left? In disruptive times, traditional evaluation patterns help while the competence to thoroughly test tempting digital concepts is not
to test, is lacking in many places. At the same time, the prospects for funds that have resilient bring processes for dealing with digital companies, everything else
than dull: Nils Seebach identifies potential and outlines the principles of a digital due diligence worthy of the name.

A "victim of digitization" is usually understood to mean the small specialty retailer around the corner that closed its doors the other day, or perhaps one of those yellowing department store chains that only survive by means of adventurous permanent discounts and layoffs. In the process, one forgets that the latter in particular are actually only the visible shell of a much larger failure. Behind the crumbling façade of the old-established retail trade, horrendous sums of invested capital are being destroyed day in, day out.

It should be a great mystery to us why private equity funds continue to blithely invest millions in stationary retail concepts that most analysts rightly regard as unsustainable. Especially since these funds cannot ignore the fact that the affected areas of their portfolios are performing rather poorly. Thus, decisions to retain or even expand such positions are actually only understandable if one assumes that the investment managers are pursuing a hard-core optimization approach.