This was an excellent introductory book that explains the profession of a private equity fund manager and the nature of the work in general, drawing on the author’s extensive practical experience. Thanks to the author’s witty writing style, the book was engaging to read despite its technical content. In particular, the author’s insights into common misconceptions and the realities of the industry—shared by the CEO of an active private equity firm—felt as vivid as receiving one-on-one private tutoring.

Private equity funds generate returns by acquiring undervalued companies, enhancing their value through restructuring and management diagnostics, and then reselling them. This process struck me as being akin to a “catfish” that breathes new life into a pond. This is because the process of improving the fundamentals of a struggling company to increase its value before bringing it to market resembled selling a plump, well-fed catfish at a high price.

I became even more engrossed because this coincided with a period of wild stock price swings due to the management control dispute between Korea Zinc, MBK Partners, and Youngpoong. As I watched the stock price skyrocket due to the public tender offer competition between the two sides, only to plummet due to concerns about a KOSPI bubble and the fallout from the war in the Middle East, I found myself delving deeply into MBK Partners, the private equity firm. In fact, my feelings were particularly poignant because I had decided to make a small investment not simply for the sake of capital gains, but out of a desire to protect our companies, driven by concerns that Chinese capital was mixed among MBK’s LPs (limited partners).

Through this book, I came to understand that private equity funds ultimately play a role similar to that of a “doctor,” enhancing shareholder value and improving a company’s fundamentals. I was also surprised to learn that the incentives generated upon fund liquidation amount to 15–20% of the sale proceeds—a massive sum sufficient to purchase a small office building.

I also recall the explanation that the reason this field is dominated by elites—such as graduates of the top three universities (SKY), investment bankers, consultants, accountants, and CFAs—is because the high barriers to entry stem from the nature of the work, which involves frequent negotiations with company chairmen and executives. I was also struck by the mutually beneficial structure where a professional manager hired on the recommendation of a private equity firm turns the company around and then pockets a massive success fee after the sale.

However, from the perspective of existing employees, it’s worth pondering whose hard work actually makes this “high-risk, high-return” money-making spree possible. Having witnessed—both directly and indirectly—how the ownership changes, corporate culture shifts, and key talent leaves as problems are solved through the power of capital, I found myself reflecting on this even more deeply. “Will I become a strategist who reaps success bonuses after restructuring, or a leader who builds the company over the long term alongside the employees?” This book made me deeply reflect on which path my values align with.