Private Equity

  • Short-term thinking
  • Under pressure to deploy
  • Incentive to collect fees via AUM
  • Immediate returns > value creation & employees
  • Brutal and controlling board

Venture Capital

  • Only care about one home run, write off the rest
  • Under pressure to deploy
  • Incentive to collect fees via AUM
  • Stratospheric growth and returns expectations
  • Not focused on cashflow fundamentals

Arete

  • Long-term orientation
  • No pressure to deploy; only when sensible
  • No incentive to raise capital to amass fees
  • Focused on fundamentals, building, and people
  • Supportive board, engaged when you want