Private equity firms can boost the value of their investment portfolio by applying a systematic innovation method along the entire investment value chain - before, during, and even after the investment.
Private equity firms are collections of investors and funds that put money into privately-held companies. Private equity investments provide working capital to a target company to nurture expansion, new product development, or restructuring of the company’s operations, management, or ownership. Private equity firms are betting on their ability to take control of the target, clean it up, make it more competitive, and then sell it for a higher price. It is like "flipping" a home in the real estate market.
Here is how a private equity firm could apply systematic innovation in their portfolios: