“Where your returns come from will be much more focused on creating better earnings growth,” he said.
A long era of easy profits in private equity is gone, and Goldman Sachs Group Inc. is digging in deeper for the harder work ahead.
That’s the message from Marc Nachmann, the head of the Wall Street firm’s money-management arm, adding his voice to the chorus of industry leaders declaring the buyout business has passed a critical juncture. A period of profits driven by financial engineering and “multiples expansion” is over, Nachmann said in an interview.
