BERLIN – Henry Kravis, the co-founder of the private equity firm Kohlberg Kravis Roberts, and other industry leaders think the private equity sector has a bit of an image problem.
Speaking at SuperReturn International in Berlin, Mr. Kravis said that the industry failed to properly explain to the public what it does when a private equity firm takes over a company and how it helps those businesses and the economy, including investors like pension funds and sovereign wealth funds.
“I think as an industry, we do a lousy job of telling our story,” Mr. Kravis.
As a result, private equity firms are often confused with hedge funds, Mr. Kravis said.
Initiatives, like forming the Private Equity Growth Capital Council, an industry group, have helped educate the public and politicians alike, Mr. Kravis said. But more can be done, he said.
For example, several years ago, a German politician, in the midst of a heated campaign, described foreign buyout firms as “locusts.”
Steve Koltes, co-founder of the European private equity firm CVC Capital Partners, said the industry needed to come up with a similar but positive catchphrase to describe its actions.
He said one industry executive had suggested a “honeybee,” bringing honey back to the hive and “sharing it with pensioners.”
“I’m not sure that works, either,” Mr. Koltes said.