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What Do Private Equity Firms Say They Do
| Content Provider | Semantic Scholar |
|---|---|
| Author | Gompers, Paul A. Kaplan, Steven N. Mukharlyamov, Vladimir |
| Copyright Year | 2015 |
| Abstract | 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 limited partners focus more on absolute performance as opposed to risk-adjusted returns. Capital structure choice is based equally on optimal trade-off and market timing considerations. PE investors anticipate adding value to portfolio companies, with a greater focus on increasing growth than on reducing costs. We also explore how the actions that PE managers say they take group into specific firm strategies and how those strategies are related to firm founder characteristics. |
| Starting Page | 449 |
| Ending Page | 476 |
| Page Count | 28 |
| File Format | PDF HTM / HTML |
| DOI | 10.2139/ssrn.2600524 |
| Alternate Webpage(s) | https://www.aeaweb.org/conference/2015/retrieve.php?pdfid=936 |
| Alternate Webpage(s) | http://www.hbs.edu/faculty/Publication%20Files/15-081_9baffe73-8ec2-404f-9d62-ee0d825ca5b5.pdf |
| Alternate Webpage(s) | http://www.gsb.stanford.edu/sites/default/files/documents/fin_03_15_kaplan.pdf |
| Alternate Webpage(s) | https://conference.nber.org/conferences/2015/PRs15/Gompers_Kaplan_Mukharlyamov.pdf |
| Alternate Webpage(s) | https://doi.org/10.2139/ssrn.2600524 |
| Volume Number | 121 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
