Special purpose acquisition companies (SPACs) have raised around $22bn from investors since 2003, and comprised 20% of total funds raised in US IPOs in 2007. SPACs are interesting structures - allowing investors a risk-free option to invest in a future acquisition. However, we show that more...

Special purpose acquisition companies (SPACs) have raised around $22bn from investors since 2003, and comprised 20% of total funds raised in US IPOs in 2007. SPACs are interesting structures - allowing investors a risk-free option to invest in a future acquisition. However, we show that more...

This paper provides an empirical analysis of the financial structure of large recent buyouts. We collect detailed information of the financings of 153 large buyouts (averaging over $1 billion in enterprise value). We document the manner in which these important transactions are financed. Buyout...

This paper provides a model to explain a puzzle connected with IPOs: why underwriters often create naked short positions - not covered by an over-allotment option - when share prices usually increase in the aftermarket, exposing them to loss. We focus on the economics of stabilization and naked...

This paper focuses on funds of funds (FOFs) as a form of financial intermediation in private equity (both buyout and venture capital). After accounting for fees, FOFs provide returns equal to or above public market indices for both buyout and venture capital. While FOFs focusing on buyouts...

Special purpose acquisition companies (SPACs) raised over $22bn from investors during the period 2003-2010, representing a significant proportion of US initial public offerings (IPOs). SPACs are interesting structures – providing investors with very low risk options to invest in future...

Stabilization is the bidding for and purchase of securities by an underwriter immediately after an offering for the purpose of preventing or retarding a fall in price. Stabilization is price manipulation, but regulators allow it within strict limits - notably that stabilization may not occur...

Firms increasingly appoint independent advisers in IPOs alongside underwriters. We explore why, and we formulate a selection model. Controlling for issuer-adviser matching, we find advisers in aggregate have no effect on first-day returns, withdrawals, or fees paid to underwriters. However,...