Private Equity’s biggest blind spot? The way it speaks.

The way private equity firms communicates – and particularly the language it uses – can often feel out of touch. For example terms like “target” for prospective portfolio companies risk sending the wrong signals, as it sounds like relationships and culture are secondary. It’s a language shaped by American deal culture – where financial engineering takes center stage and people are secondary.

Meanwhile in Denmark a new language is developing amongst leadership teams and boards. One that reflects local values, prioritises people, and embraces purpose and responsibility.

A language where “target” becomes “partner company,” and “bolt-on” becomes “strategic integration,” – all to secure a more inclusive and value-based conversation, which makes it easier for employees and leadership teams to understand the journey they’re entering into with private equity ownership.

But unfortunately Private equity is lagging behind. That doesn’t just harm the sector’s image – it makes it harder to build trust, win mandates, and attract the talent and partnerships needed to succeed in today’s environment.

Independent research shows that private equity consistently creates value – not just financially, but through sharper strategy, stronger leadership, and more resilient organisations. Many firms are genuinely committed to building businesses in a responsible and sustainable way. They invest thematically to help address major societal challenges: the green transition, ageing populations, generational succession, and defence, to name a few.

Still, the language keeps some outdated perceptions alive. When communication becomes too transactional and technical, it reinforces a story that no longer holds true. And that’s a missed opportunity. A missed opportunity to show the comapany you work with that you in fact come in as a credible, long-term collaborator.

In Denmark and across the Nordics, M&A activity is booming. 2024 closed with the highest number of transactions in years. And with such influence comes responsibility. Responsibility to communicate openly, transparently, and in a way that reflects the Nordic business culture.

Private equity doesn’t need to dilute its financial expertise. But it does need to complement it with a language that reflects the real value it creates – for people, for businesses, and for society. In that way they will be able to drive far more value – for everyone involved in the journey.