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Second Hand or Second Generation? -The Performance of Secondary Buyouts

Kick, Jonas; Schwetzler, Bernhard - 2022

Secondary buyouts (SBOs) can be viewed as an oxymoron: Booming SBO activity meets public and investor´s perception of this investments as “lemons”, claiming that first round buyers in the primary buyout (PBO) leave no potential for further value creation on the table. Using a unique back to...

Persistent link: https://www.econbiz.de/10013290113

Performance benefits of tight control

Gill, Andrej; Visnjic, Nikolai - Research Center SAFE (Sustainable Architecture for … - 2013

This study investigates the transition from being a listed company with a dispersed ownership structure to being a privately held company with a concentrated ownership structure. We consider a sample of private equity backed portfolio companies to evaluate the consequences of the corporate...

Persistent link: https://www.econbiz.de/10010955138

Insight private equity

Gill, Andrej; Visnjic, Nikolai - Research Center SAFE (Sustainable Architecture for … - 2013

We are able to shed light on the black box of restructuring tools private equity investors use to improve the operational performance of their portfolio companies. By building on previous work considering performance evaluation of PE backed companies, we analyze whether private equity improves...

Persistent link: https://www.econbiz.de/10010955147

Underpricing, wealth loss for pre-existing shareholders and the cost of going public: the role of private equity backing in Italian IPOs.

Ferretti, Riccardo; Meles, Antonio - Dipartimento di Economia "Marco Biagi", Università … - 2011

This study analyses the role of private equity investors in solving asymmetric information problems and the relationship to underpricing, wealth loss for pre-existing shareholders and the cost of going public. According to certification theory, companies backed by private equity investors are...

Persistent link: https://www.econbiz.de/10009320376

Risk of Financial Distress in Secondary Buyouts

Eschenröder, Tjark - 2020

Secondary buyouts (SBOs) represent more than 50 percent of all buyouts in 2018. Even though general partners argue that SBOs are less attractive investment targets for buyouts and some empirical indication against an outperformance of SBOs exists, the share of SBOs continuously increases....

Persistent link: https://www.econbiz.de/10012845490

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

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

Investor Activism and Mergers and Acquisitions (M&A)

Singh, Akshay - 2016

This study analyzed activism that leads to a merger or acquisition (M&A) of a firm to see its benefits for the … counts and cash versus stock offers to see the benefits of activism to the target firm and its shareholders. It checked the … shareholders, as compared to about 15-20% for the non-activism related M&A. It also observed a 30% increase in the post …

Persistent link: https://www.econbiz.de/10014034757

Buying Performance? The Impact of Multiple Arbitrage in B&B Strategies

Heisig, Philipp; Kick, Jonas; Schwetzler, Bernhard - 2022

B&B strategies are increasingly popular, with past studies showing them to achieve superior returns. The question of how exactly B&B strategies create value is, however, still a "black box". Relying on a unique and proprietary sample of 161 B&B buyouts with valuation details on related add-on...

Persistent link: https://www.econbiz.de/10013403766

Private Equity Economics : Compensation and Growth Dynamics

Lim, Wayne - 2022

This paper investigates the compensation and growth dynamics of private equity firms. Using proprietary data, I estimate that about half of their revenue is performance-related and find that current fund performance also has indirect effects on firms’ future revenue. The dynamics of these...

Persistent link: https://www.econbiz.de/10013405195