This article aims to analyze the evolution of private equity over the last decade in terms of valuation (asset prices), determinants of private equity returns and the role that leverage and corporate governance plays in the success of private equity. The years 2005-2007 were characterized by a...

We investigate the valuation effects of industry rivals on German firms targeted by hedge funds and private equity investors. We argue that both types of investors differ from other block holders due to their strong motivation and ability to actively engage and monitor. We find that the...

We investigate the valuation effects of German firms targeted by hedge funds and by private equity investors. We argue that both types of investors differ from other blockholders by their strong motivation and ability to actively engage and reduce agency costs. Consequently, we find positive...

We investigate the unique corporate governance structure of Australian private equity target firms to establish the disciplinary motive underpinning a corporate buy-out. We test our expectations using a sample of 43 publicly listed private equity target firms and a control sample of 182...

In this paper we introduce a framework to analyze the key drivers of value creation of private equity in financial institutions and the bank holding sub-segment. We estimate the influence of market-timing, take specifications of this highly regulated industry into account, and approximate the...

Unlike US and EU markets where typical concerns about private equity are excessive leverage, systemic risk and short-termism, the recent market concerns in China have centered around illicit fundraising activities and misappropriation of funds. The evidence of market failure in China challenges...

Private equity (PE) firms take an active role in the control of invested organizations. However, despite the growing economic importance of PE financing, there has been limited investigation into the control mechanisms used to manage these relationships. Most prior research examines PE as an...

We survey 79 private equity (PE) investors with combined assets under management of more than $750 billion about their practices in firm valuation, capital structure, governance, and value creation. Investors rely primarily on internal rates of return and multiples to evaluate investments. Their...

Using PitchBook's private equity (PE) database of 5,068 PE funds from 44 countries for the 2000-2012 period, we show that endowments are systematically associated with less pronounced differences between unrealized returns and subsequently realized returns. Moreover, endowments receive more...

In an earlier article (The Untold Story of Sun Capital: Disguised Dividends, 142 Tax Notes 556 (2014)), I argued that in many cases monitoring fees paid by private-equity controlled companies should be recharacterized as nondeductible dividends. This recharacterization would increase the tax...