What Role Does Private Equity Play When Leveraged Buyouts Go Public?

2008 ◽  
Author(s):  
Jerry Cao
Keyword(s):  
Private Equity ◽  
Leveraged Buyouts

scholarly journals Leveraged Buyouts and Private Equity

2009 ◽  
Vol 23 (1) ◽  
pp. 121-146 ◽  
Author(s):  
Steven N Kaplan ◽  
Per Strömberg
Keyword(s):  
Time Series ◽  
Empirical Evidence ◽  
Private Equity ◽  
Debt Financing ◽  
Leveraged Buyouts ◽  
Leveraged Buyout ◽  
The Future ◽  
Similarities And Differences ◽  
Investment Firm ◽  
A Company

In a leveraged buyout, a company is acquired by a specialized investment firm using a relatively small portion of equity and a relatively large portion of outside debt financing. The leveraged buyout investment firms today refer to themselves (and are generally referred to) as private equity firms. We describe and present time series evidence on the private equity industry, considering both firms and transactions. We discuss the existing empirical evidence on the economics of the firms and transactions. We consider similarities and differences between the recent private equity wave and the wave of the 1980s. Finally, we speculate on what the evidence implies for the future of private equity.

Private equity group reputation and financing structures in German leveraged buyouts

2017 ◽  
Vol 88 (3-4) ◽  
pp. 363-392 ◽  
Author(s):  
Ann-Kristin Achleitner ◽  
Reiner Braun ◽  
Eva Lutz ◽  
Florian Tappeiner
Keyword(s):  
Private Equity ◽  
Leveraged Buyouts ◽  
Group Reputation

Private Equity and Distressed Debt Funds Emerging Role in Preventing and Participating in Restructurings

2017 ◽  
Author(s):  
Christopher Mallon ◽  
Shai Y. Waisman ◽  
Ray C. Schrock
Keyword(s):  
Private Equity ◽  
Early Stage ◽  
Leveraged Buyouts ◽  
Subordinated Debt ◽  
Investment Activity ◽  
Track Record ◽  
Development Cycle ◽  
Start Up ◽  
Wide Range ◽  
A Company

Private equity (‘PE’) investment and distressed debt investment covers a wide range of investment activity by pooled investment vehicles (ie, funds) in privately or publicly (through ‘take-private’ transactions or IPO’s) owned companies, using capital raised from institutional investors that are limited partners of the funds. Such investment activity can be broadly categorized according to the point at which the investment is made within the typical development cycle of a company: (i) initial venture capital provides seed capital for start-up businesses; (ii) growth capital assists early-stage companies with the growth of their operations; (iii) mezzanine financing, comprising the contribution of subordinated debt or preferred equity, provides further capital to more established businesses; (iv) leveraged buyouts (‘LBOs’) are pursued to acquire portfolio businesses with a proven track record of sales and financial performance; and (v) distressed debt investing (the focus of this chapter) which provides support to companies that are in financially precarious positions.

scholarly journals Private Equity, Jobs, and Productivity

2014 ◽  
Vol 104 (12) ◽  
pp. 3956-3990 ◽  
Author(s):  
Steven J. Davis ◽  
John Haltiwanger ◽  
Kyle Handley ◽  
Ron Jarmin ◽  
Josh Lerner ◽  
...  
Keyword(s):  
Private Equity ◽  
Operating Performance ◽  
Job Creation ◽  
Leveraged Buyouts ◽  
Target Firms ◽  
Before And After ◽  
Job Creation And Destruction

Private equity critics claim that leveraged buyouts bring huge job losses and few gains in operating performance. To evaluate these claims, we construct and analyze a new dataset that covers US buyouts from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing to controls defined by industry, size, age, and prior growth. Buyouts lead to modest net job losses but large increases in gross job creation and destruction. Buyouts also bring TFP gains at target firms, mainly through accelerated exit of less productive establishments and greater entry of highly productive ones. (JEL D24, G24, G32, G34, J23, J63, L25)

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