The Private Equity Advantage: Ready, Set, Grow

Introduction

Private Equity (PE) plays a crucial role in helping businesses achieve growth. Consider the case of Burger King, a 55-year-old publicly traded burger chain that faced severe challenges, including declining customer traffic and earnings amidst the recession. In 2010, 3G Capital, a Brazilian PE firm, acquired Burger King for approximately $3.3 billion ($4 billion inclusive of debt). By shifting to a franchise-based model, slashing operational costs, and injecting fresh energy into brand innovation, 3G Capital did not just revive Burger King—they supercharged it. By 2012, earnings had surged by 49%, setting the stage for a merger with Tim Hortons in 2014 to create Restaurant Brands International. By 2017, 3G Capital and other shareholders had realized over $14 billion from the turnaround.¹ This story showcases how PE can drive substantial business recovery and growth.