This article examines the impact of private equity (PE) fund-level dynamics on the PE fund's general partner's (GP) divestment decisions and whether these decisions are to the detriment of the PE fund's limited partners, indicating a moral hazard problem. We use a unique sample of 1,112 buyout...

Private equity (PE) fund managers recurrently close limited partnerships, thereby running several funds simultaneously. Conceptually, the limited partnership model as a form of financial intermediation should not have any impact on decisions about single PE investments and returns. This study...

Credit facilities in private equity, often referred to as “subscription lines” (SL), have become a topic of interest, sparking debates not only among researchers but also among practitioners. In this paper, we are the first to analyze their potential thoroughly by quantifying the impact on...