How Private Equity Differs Around the World: What Executives Should Know

Private equity may look uniform from the outside, but the reality is very different. The way firms operate, govern, hire, and evaluate leaders varies significantly by region. For ThriveBoard members across nineteen countries, understanding these differences is essential when exploring new opportunities.

Deal Speed and Decision Making by Region
• United States: Fast pace and expectation of autonomous decision-making.
• United Kingdom and Europe: More structured and consensus-oriented.
• Asia: Strong influence of relationships and founder involvement.
• Latin America: Decisions often adapt to macroeconomic instability and require operational resilience.

Governance Expectations Shift by Market
Executives should expect very different board dynamics depending on country. United States boards are highly KPI-driven. European boards emphasize governance and risk protections. Asian boards often integrate Western processes with local business norms.

Operating Partner Usage Differs Across Regions
Some markets embed operating partners throughout the value creation process. Others use them only during diligence or transformation phases.

Compensation Structures Vary Widely
American and British firms often emphasize equity and incentive upside. Other regions may lean toward higher cash compensation with lower equity participation.

Final Takeaway
Understanding regional norms helps executives avoid misalignment and increases the likelihood of success in international PE environments.