Long-Term Private Equity: A New Normal?

Michael Santos published the article, "Long-Term Private Equity: A new normal?" in The M&A Journal. The article explores how private equity’s traditional model of acquiring control, improving operations, and exiting within a defined timeframe is evolving as longer holding periods, evergreen funds, and continuation vehicles reshape investment strategies. Increasingly, sponsors are exploring employee ownership and stewardship-oriented governance as tools to create sustainable enterprise value.

Broader employee participation can improve retention, engagement, and operational performance, while stewardship structures help preserve company culture, founder priorities, and institutional stability. Hybrid models combining traditional private equity investment with employee ownership and governance protections are also emerging as potential alternatives. Despite challenges involving investor liquidity, control, and fiduciary duties, these approaches may represent the next evolution of private equity, balancing financial returns with long-term business resilience.

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