AXELSON, ULF; STRÖMBERG, PER; WEISBACH, MICHAEL S. - In: Journal of Finance 64 (2009) 4, pp. 1549-1582
Private equity funds are important to the economy, yet there is little analysis explaining their financial structure. In our model the financial structure minimizes agency conflicts between fund managers and investors. Relative to financing each deal separately, raising a fund where the manager...