What do private equity firms say they do?

• 成果类型: Article
• 署名作者: Gompers, Paul; Kaplan, Steven N.; Mukharlyamov, Vladimir
• 署名单位: Harvard University; National Bureau of Economic Research; University of Chicago; Georgetown University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2016.06.003
• 发表日期: 2016
• 页码: 449-476
• 关键词: private equity; valuation; capital structure; VALUE CREATION

摘要

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. (C) 2016 Elsevier B.V. All rights reserved.