Narrow search
Showing 1 - 10 of 5,211
Cover Image
Private Equity Acquisitions and Strategic Buyers : Information Discounts versus Synergies
Flor, Christian Riis - 2019
value creation with the target's remaining assets. Strategic buyers more often integrate with the target to obtain synergy … required return premium is smaller, and strategic buyers' synergy gains are smaller. Such takeovers by private equity funds can …
Persistent link: https://www.econbiz.de/10012865899
Cover Image
Evaluating Private Equity Performance Using Stochastic Discount Factors
Gredil, Oleg - 2020
We examine the performance of 2,790 private equity (PE) funds incepted during 1979-2008 using Stochastic Discount Factors (SDFs) implied by the two leading consumption-based asset pricing models (CBAPMs) — external habit and long-run risks — as their assumptions appear consistent with...
Persistent link: https://www.econbiz.de/10012845721
Cover Image
Private Equity and Corporate Borrowing Constraints : Evidence from Loan Level Data
Haque, Sharjil; Jang, Young Soo; Mayer, Simon - 2022
How do private equity (PE) investors affect firms' borrowing constraints, debt structure, and leverage dynamics? In this paper, we examine this central question by analyzing a large and novel database of PE-backed, bank-reliant, small and middle market firms in the U.S. using administrative...
Persistent link: https://www.econbiz.de/10014235742
Cover Image
Buying to sell : a theory of buyouts
Norbäck, Pehr-Johan; Persson, Lars; Tåg, Joacim - 2010
Private equity owned firms have more leverage, more intense compensation contracts, and higher productivity than comparable firms. We develop a theory of buyouts in oligopolistic markets that explains these facts. Private equity firms are more aggressive in inducing restructuring compared to...
Persistent link: https://www.econbiz.de/10003914407
Cover Image
Governance Arbitrage by Private Equity and Why it Occurs
Schofield, Guy - 2014
In this paper I test the proposition put forward by private equity players that they undertake “governance arbitrage”. This proposition suggests that public companies with weak governance are more likely to receive a buyout bid from a private equity (PE) firm.I find evidence that companies...
Persistent link: https://www.econbiz.de/10013039868
Cover Image
Timely "gain recognition" in debt contracting - evidence from cost savings and synergy add-backs
Jiang, Shushu - 2021
In this paper, I study the inclusion of cost savings and synergy add-backs (cost-synergy add-backs hereafter) in loan … contracts. Such add-backs allow borrowers to add unrealized cost savings and synergy gains into contractual earnings … calculations and thus reflect timely gain recognition in debt contracting. I find that the implications of cost-synergy add …
Persistent link: https://www.econbiz.de/10012595453
Cover Image
How much for a haircut? : illiquidity, secondary markets, and the value of private equity
Bollen, Nicolas P. B.; Sensoy, Berk A. - 2016
Limited partners (LPs) of private equity funds commit to invest with extreme levels of illiquidity and significant uncertainty regarding the timing of capital flows. Secondary markets have emerged which alleviate some of the associated cost. This paper develops a subjective valuation model...
Persistent link: https://www.econbiz.de/10011772208
Cover Image
Valuing Private Equity
Sorensen, Morten - 2013
We develop a dynamic valuation model of private equity (PE) investments by solving the portfolio-choice problem for a risk-averse investor (LP), who invests in a PE fund, managed by a general partner (GP). Key features are illiquidity, leverage, GP value-adding skills (alpha), and compensation,...
Persistent link: https://www.econbiz.de/10013090000
Cover Image
Valuing Private Equity
Sorensen, Morten - 2013
We develop a dynamic valuation model of private equity (PE) investments by solving the portfolio-choice problem for a risk-averse investor (LP), who invests in a PE fund, managed by a general partner (GP). Key features are illiquidity, leverage, GP value-adding skills (alpha), and compensation,...
Persistent link: https://www.econbiz.de/10013091151
Cover Image
The Cost of Private Equity
Stoff, Ingo - 2013
Private equity (PE) has developed into a well-established asset class with strong growth in capital commitments over the last decades. Consequently, fund returns have decreased over time and investors have become more cost conscious. Based on a unique data set of 358 PE buyout funds with vintage...
Persistent link: https://www.econbiz.de/10013072907