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 George Fisher, a senior adviser at
Kohlberg Kravis & Roberts & Co., spoke about managing the firm's portfolio companies at Columbia University's Business School's Private Equity and Venture Capital conference Friday afternoon.Fisher began by admitting that 90% of the audience likely knew more about the workings of the private equity industry than himself, before explaining his role as an adviser to the buyout giant on deals. His role is primarily in aiding due diligence and in helping to improve portfolio companies. Fisher mentioned the public perception problems that buyout firms continue to face. "We have a massive PR problem as an industry," he said. "I know that its being addressed, but in the past the bad stories were not rebutted effectively. We took the 'private' part too literally." Nevertheless, Fisher had heavy praise for the ability of private equity firms to add value to corporations. "Especially in these times, KKR is focused on building value within our portfolio companies," Fisher said. "Getting from here to there is easier as a private company; you don't have to deal with the markets, the analysts, the share price. The decision cycle time and the quality of decision making are both enhanced in private equity-owned companies." Fisher continued by saying that the crisis will lengthen the exit process."On average we hold a company for seven years. The current credit crisis will likely add a year to that, but that's a lot of time to have to transform a company, and it's easier to transform a company out of the limelight," he said. "The virtue of private equity is that we really are working with a long-term view," Fisher continued. "Henry [Kravis] and George [Roberts] have been through recessions before, and their perspective is that we'll get through it. It will just take a lot of hard work. We know what we have to do, we just have to do it." - George White See conference Web site CategoriesPrivate capital video
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