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"This paper analyzes the determinants of buyout funds' investment decisions. In a model in which the supply of capital is "sticky" in the short run, we link the timing of funds' investment decisions, their risk-taking behavior, and the returns they subsequently earn on their buyouts to changes...
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Using block share acquisitions made by private equity (PE) funds, we examine the sources of value gains in PE minority … equity investments. We find that the targets in PE acquisitions, particularly poorly performing targets, targets with high R …-acquisition operating performance than do targets in non-PE acquisitions. The value creation is also more pronounced when PE …
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This paper studies the relationship between portfolio diversification and fund performance, based on an unexplored, hand-collected dataset of buyout funds. The dataset comprises detailed information at the level of portfolio companies, which allows measuring the concentration of the fund...
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