Past vs. Future: Why PE and VC See the World Differently
Private equity and venture capital usually get filed under the same heading. Same “private capital” bucket on an allocation slide, same GPs and LPs, same carry, same ten-year funds. In the Gulf especially, a lot of family offices and institutions treat VC as a smaller, riskier version of the PE they already know. I think that’s the single biggest misunderstanding I come across when talking to investors in the region. PE and VC aren’t the same job at different sizes. They look at the world in opposite directions. PE looks backwards. A private equity investor starts with history. Three to five years of audited accounts, a stable EBITDA line, a customer base that’s been there long enough to be measured. The question they’re answering is: what is this business worth today, and what can we reasonably do to make it worth more? The assumptions are deliberately modest. Growth in the
