Issue Private equity: patient governance suits a rebalanced system

Summary

Private capital firms control more than 17 trillion US dollars, own over 30,000 companies and employ more than 25 million people. EY therefore sees the sector as central to how capital is directed. Owners of capital will keep looking for skilled allocators because returns are compounding faster than they can deploy money themselves. EY argues that private equity suits a rebalanced form of capitalism because it combines patient governance, aligned incentives and operational expertise to build resilient companies. It also highlights a growing practice of sharing portfolio company profits with workers, which is pushing employee ownership deeper into portfolios.