‘Private for longer’ driven by digitalisation

Private equity ownership represents a better fit than declining public listings for digital firms as they push to rapidly scale up their disruptive business models, researchers have said. [caption id="attachment_4803" align="alignright" width="350"] "Am considering taking Tesla private at $420. Funding secured," tweeted Tesla CEO Elon Musk on 7 August this year[/caption] The decades-long slump in US stock market flotations is linked to the very nature of digital businesses and their need for “expert manpower, contacts and strategic relationships” private investors bring, according to a new piece penned by professors Vijay Govindarajan, Shivaram Rajgopal and Anup Srivastava.