An article in Wednesday's Financial Times made the following observation about some fundamental changes afoot in the private equity industry:
"During the credit boom, private equity tended to hire financial wizards. Now, operational experts are in demand as private equity houses fix up companies they own rather than wonder about dividend recaps."
We've observed a similar trend in the private equity sector, and it's good news for both the environment and business in a tough economy.
Increasingly, private equity firms are looking for ways to run leaner and more efficient businesses through a focus on company operations. From improving energy efficiency to cutting material and packaging waste to reducing water use, we believe that environmental management offers significant opportunities to do just that.
In our partnership with private equity leader Kohlberg, Kravis and Roberts and Co., we are proving that a focus on operations can yield real business and environmental results. In 2008 alone, we helped identified over $16M in operational savings and avoided 25,000 metric tons of GHGs at three portfolio companies.
KKR is expanding environmental management efforts across its portfolio. Stay tuned for 2009 results, coming soon.