Insight by Business

Accepting occasional mistakes is a deliberate trade off because tolerating errors preserves bold, fast decision making that generates greater long term advantage than punishing every misstep would.
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See all →They often take minority stakes and avoid operational control because leaving management to operators preserves incentives, lets the bank supply capital and advice where it has expertise, and avoids the distraction and cost of running businesses directly.
Most information carried in partners' heads keeps options open because avoiding written records prevents legal entanglements, preserves operational secrecy, and allows fast discretionary action when deals demand it.
