As Forbes explores in the Global Private Equity Report, there are three types of Private Equity Firms that made money over the last year. The first type had mostly failed investments, but one extremely lucky pick that made up for it all. About 29% of the funds fit into this category. Luck isn’t what investors are looking for when they choose a private equity firm, however, but these still lucked into a profit.
The second type were composed of groups that often looked for underdogs, but unlike the first group they consistently managed to pick enough winners to remain profitable in the long run. The distinction between this group in the last is the ability to consistently have several highly profitable choices each year.
The final group, making up 38%, have repeatable success through consistency. Urbana Varro is an example of this group. By working in a specialized area – hospitality – Urbana Varro is able to consistently go in and prepare hotels to take advantage of the industry growth.