The private equity industry (PE) suffered a setback triggered by the financial crisis in 2007. Some have questioned its continued viability. PE is a major alternative asset class with over one trillion dollars under management. Consequently, its viability, is a major investor concern

Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows. The effects are stronger among financially...

The private equity industry (PE) suffered a setback triggered by the financial crisis in 2007. Some have questioned its continued viability. PE is a major alternative asset class with over one trillion dollars under management. Consequently, its viability is a major investor concern

This paper relies on a unique dataset of more than 4,700 businesses acquired in a buyout or similar transaction between 2000 and 2009 to estimate the default rate of private equity-backed companies during the "Great Recession" of 2008-2009. The paper finds that the default rate of private...

Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows. The effects are stronger among financially...

Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows. The effects are stronger among financially...

Bernstein, Lerner, and Mezzanotti (2019) was funded by the private equity think tank, the Private Capital Research Institute. It is not surprising that the private equity industry, through their affiliated think tanks, are funding academics to produce research. Having been labeled so eloquently...