Private-equity ownership relies less on internal capital markets than conglomerates do.

Question

Quizplus · Accepted Answer

Private-equity firms typically focus on acquiring and improving individual companies, whereas conglomerates operate in multiple industries and may rely on internal capital markets to allocate resources across their various businesses. Therefore, private-equity ownership is likely to rely less on internal capital markets than conglomerates do.

Private-Equity Ownership Relies Less on Internal Capital Markets Than Conglomerates