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Showing articles for: August 2018
Investing Outside the Box: Evidence from Alternative Vehicles in Private Equity
The last two decades have seen a significant transformation of the structure of the private equity (PE) industry. Not only has the amount of capital under management by buyout, venture, and private debt funds grown dramatically, but it has become more concentrated in a smaller set of fund families. At…
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Persistent Blessings of Luck: Theory and an Application to Venture Capital
Financial economists have long debated whether or not investment managers differ in the skills they have. While studies of individual stocks, mutual funds, and other fund classes generally find that investors do not consistently outperform passive benchmarks after-fee and out-performance is not persistent, an important exception is the private equity…
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Management Practices and Mergers and Acquisitions
A fundamental question in corporate finance is how mergers and acquisitions create value? Value creation could arise from many sources, including economies of scale or scope, increases in managerial efficiency, improvements in production techniques, or increases in market power. However, while synergies are the leading motive behind mergers, direct empirical…
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