PE must “adapt or die”, says EQT’s von Koch

"There is nowhere to hide in this connected world," warned von Koch when addressing the audience on the topic of social responsibility. "We went from focusing on just one stakeholder – our investors – to becoming an integral part of society; it is time everyone in this industry acknowledges this responsibility."

Von Koch went on to encourage fellow private equity practitioners to reflect on the industry's image: "We should all reflect on why we have gained such a bad reputation, and our behaviour is crucial – only by behaving in a transparent manner to all stakeholders will we regain trust."

The EQT managing partner extended this call for change to the issue of diversity. "Gender equality is a similar issue catching up on PE," he said. "The industry really lacks here and we have a long way to go, but opportunities are huge."

Finally, von Koch warned that failure to act on these challenges would have dire consequences in the long run: "It is 'adapt or die' now. The survivors in this challenging market environment will be the firms able to adapt – investors that do not accept their responsibility to do good will disappear. We have to transform ourselves in the same way that we transform the companies we invest in." He also extended this duty beyond GPs: "The responsibility also lies with LPs and all the intermediaries in our profession."

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