Private Equity - Science topic

The evolution of shadow banking has become a central theme in discussions surrounding the modern financial system. Shadow banking refers to financial intermediaries that operate outside the traditional banking system, providing services such as credit intermediation, asset management, and liquidity provision, but without the stringent regulatory fr...

Since Professor Martin J. Cline's first attempt at gene therapy in 1980, biomedicine has made tremendous progress especially in cell and gene therapy. This field offers hope to millions worldwide by providing potential cures rather than mere treatments for their diseases. But how does private equity and venture capital financing fit into this pictu...

Using a novel data set of realized syndicated loan cash flows and a risk‐adjustment methodology adapted from the private equity literature, I provide a measure of risk‐adjusted returns for bank loan cash flows. Banks, on average, generate 180 basis points in gross risk‐adjusted returns and add $75 million of value annually to their loan portfolios....

As labour shortages, cost pressures, and precision demands reshape manufacturing, robotic welding stands at the centre of the industrial automation revolution. This paper explores why M&A activity is heating up, with corporate acquirers and private equity zeroing in on scalable, AI-integrated welding tech. This article unpacks valuation trends, de...

This chapter presents the results of our research into the potential for financial scalability of the defence industry by the increase in investments in this industry, specifically by Private Equity (PE) firms. We investigate the following questions: (1) to what extent does the Dutch defence industry use PE as a source of business capital; (2) what...

This article describes the large and growing interdependence of public pensions and private equity – and the unusual politics that drives it. By any definition, public pension funds represent government money: they are funded through contributions of government employers and employees for the purpose of providing retirement benefits to public-secto...

The financing landscape in the water sector is plagued by overly short-term investment priorities, an outsized focus on de-risking private sector investments, rampant private equity financialisaton of water utilities in high-income countries, and international debt crises in low and middle-income countries all of which detract from equitable and su...

In corporate finance, private equity (PE) is essential for companies pursuing growth, restructuring, or operational improvement. This discussion explores PE's structure, investment strategies, and influence on portfolio firms while addressing challenges and trends in the field. PE firms utilize specialized funds Like Leveraged Buyouts (LBOs), Ventu...

Abstract Can Germany Become Europe’s Green Shipping Finance Hub? This paper explores whether Hamburg could adapt key elements of the Norwegian shipping finance model to attract institutional capital for decarbonized maritime transport. Norway’s investor-friendly approach—using tax-efficient structures, investor syndicates, and project-based entit...

Private equity and corporate ownership of veterinary practices has largely been characterized as either wholly good or wholly bad. Supporters point to increased returns and access to capital and investments in associates, technology, and other resources. Opponents point to unnecessary debt and decreased quality of care. Good or bad, they are part o...

This case study examines the negotiation between a technology company and a private equity fund, highlighting the complexities of aligning distinct interests in a private equity negotiation. The parties navigated critical aspects such as sale price, organizational culture, staff retention, breakup fee, and labor liabilities, utilizing negotiation t...

In Deutschland steigt die Zahl der Medizinischen Versorgungszentren (MVZ) bereits seit mehreren Jahren. Seit 2017 ist zusätzlich ein starker Anstieg branchenfremder Investoren zu beobachten. Besonders aktiv in diesem Bereich sind Private-Equity-Gesellschaften. Diese haben begonnen, Praxisketten aufzubauen. Momentan ist es nicht möglich, den vollen...

Background Recently, private equity (PE) investments in plastic surgery have increased as senior surgeons retire and transfer their legacy practices to corporate ownership in exchange for substantial payouts. During this transition, clinicians and practitioners at acquired practices often feel skeptical about the organization’s goals and future. If...

This paper uses advanced econometric methods to explore the statistical properties, volatility dynamics, and macroeconomic determinants of Listed Private Equity (LPE) investments in South Africa from 2010 to 2023. The key objectives include testing for non-normality in LPE returns and assessing volatility clustering. By employing GARCH-family model...

This article examines the links between financialization, rent increases, and spatial inequality in Toronto, Canada. By drawing on qualitative data from the grey literature, corporate records, and real estate events, we first find that financial landlords (REITs, REOCs, asset managers, private equity, and institutions) attest to rent price increase...

This paper analyzes the feasibility and strategic framework of the Pateros Vertical Innovation Campus (PVIC), a proposed high-density development in Metro Manila's land-constrained Pateros municipality. The PHP 180 billion (approx. USD 3.2 billion) project proposes seven 90-storey towers built predominantly on air rights over the C-5 road, creating...

This article examines the transformative role of advanced artificial intelligence in private equity (PE) and venture capital (VC), offering a comprehensive framework for how state-of-the-art AI systems are redefining investment workflows across the entire lifecycle—from deal sourcing and due diligence to portfolio monitoring, valuation, exit strate...

Effective risk management is essential for private equity (PE) funds to navigate economic, market, and operational challenges while maximizing investor returns. This study aims to evaluate the risk management practices employed by private equity funds in South Africa, focusing on the tools used for pre-investment risk assessment and the strategies...

Objective Investigate how private equity (PE) acquisitions shape the otolaryngology workforce. Study Design Cross‐sectional. Setting Private outpatient clinics. Methods A comprehensive market database, Pitchbook (Seattle, WA), was queried utilizing keywords for outpatient otolaryngology practices acquired by PE firms from 2010 to 2023. Acquisiti...

In his first column, Joseph Pategou examines the biosimilar market and how it has evolved in recent years, touching on global approval dynamics, regulatory developments and future growth opportunities. In 2020, I explored the biosimilar development landscape in an article titled “Private Equity: A New Pillar for Biosimilar Development?” The findin...

Private Equity (PE) Investment has developed rapidly in the past decades. Many researches indicate that private equity impact enterprises in various ways. This paper explores the impact of PE investment on enterprises from three perspectives: company development, innovation and employment through literature review. PE investment improves the perfor...

Private equity has emerged as a transformative force in the global financial landscape, offering businesses a powerful mechanism for restructuring, innovation, and value creation. This paper will discuss the two cases of how PE firms improve their investment strategy for value creation: The Dell LBO led by Michael Dell and Silver Lake Partners and...

This study investigates the share of foreign private equity funds’ investments within foreign direct investment in Poland over the period 2013–2022. The analysis focuses on assessing the trends, variability, and size of share of these investments in Poland’s foreign direct investment landscape. Utilizing data from the National Bank of Poland and In...

The United States has more than 15,000 nursing homes that care for more than 1.3 million residents. More than 70 percent of these facilities are for-profit, and about 9 percent are owned by private equity funds. Nursing home residents are vulnerable – and yet too many nursing homes have inadequate staffing levels, poor infection control, failures i...

This article discusses the features of banking, investment banking, insurance, mutual funds, exchange-traded funds, hedge funds, private equity funds, securitization, futures/ forward contracts, and options contracts. The first essay outlines the qualities of the banking industry. The second essay talks about investment banking, defining both it an...

This research studies the choices of performance benchmarks by defined benefit pension funds worldwide, focusing on real assets. Pension fund allocations to non-listed 'alternative' assets, i.e., real estate, infrastructure, commodities, and private equity, have rapidly increased in recent decades, and the benchmarks used for performance measuremen...

Entrepreneurship-through-acquisition (ETA) or entrepreneurial buyouts are gaining prominence in international buyout markets, though most transactions and financial investors remain concentrated in North America. We use nascent markets in Asia as our research setting to study how buyout entrepreneurs in such emerging ETA markets adapt their communi...

Ever since the thwarted bid by T. Boone Pickens to obtain seats on the board of Koito Manufacturing, the activities of foreign investors in Japan, and of foreign CEOs of Japanese companies, have generated controversy. Foreign assertions of noble intentions are often distrusted by Japanese, while frustrations voiced by Pickens in 1989 are still keen...

Using data from the Qingsike Private Equity Database, in this paper, we systematically examine how government policy-guiding funds impacted regional economic development in China from 2010 to 2021. An empirical analysis confirms that government-guided funds have a significant positive effect on regional economic growth, particularly in less affluen...

Through a longitudinal case study spanning 1965–2020, this article scrutinizes the evolution of the influential French Peugeot family’s ownership strategies. It elucidates how the family transitioned from industrial management to becoming a significant player in international financial investment. By delving into archival materials and conducting i...

Research Summary In this special issue introduction, we analyze how a firm's international ownership affects its global strategy. We reinterpret the literature by grouping dominant owners into four categories: (1) individuals (entrepreneurs and families), (2) labor (managers and employees), (3) state (national and subnational governments), and (4)...

This paper examines the multifaceted risks that private equity (PE) investment poses to national security within the U.S. defense sector. Private equity, characterized by its pursuit of maximizing financial returns, often diverges from the strategic long-term requirements of national defense, potentially compromising national sovereignty due to inf...

The pace of technology is accelerating and reshaping financial markets, investment strategies, and the professional skill sets of financial practitioners. Emerging technologies such as artificial intelligence (AI), blockchain, fintech, and quantum computing are increasingly integrated into financial systems, transforming the long established tradit...

Private equity investments have emerged as a transformative force in healthcare, particularly in addressing challenges and opportunities in emerging markets. This paper introduces a strategic model designed to demonstrate how private equity can create substantial value within the healthcare sector. The model emphasizes three core pillars: portfolio...

Healthcare infrastructure development in frontier markets faces significant challenges, including limited access to capital, systemic inefficiencies, and inadequate investment frameworks. Addressing these barriers requires innovative financing mechanisms that can attract diverse funding sources while ensuring long-term sustainability. This paper ex...

This article presents a new methodological approach to value private equity investments based on simulation. The valuation relies on ‘imperfect replication’. This method does not presuppose the perfection of the capital market and is essentially built on measuring the risk. The approach turns out to be easy to implement. Firm specific characteristi...

Private equity investments have emerged as a transformative force in healthcare, particularly in addressing challenges and opportunities in emerging markets. This paper introduces a strategic model designed to demonstrate how private equity can create substantial value within the healthcare sector. The model emphasizes three core pillars: portfolio...

In 2024, global healthcare private equity surged to an estimated $115 billion, marking the second-highest total deal value ever recorded. This growth was driven by an uptick in large-scale deals, with five transactions exceeding $5 billion, up from just two in 2023 and one in 2022. North America remained the dominant market, accounting for 65% of...

Introduction Since 2019, private equity (PE) investment in sports franchises, media rights, and stadium infrastructure has grown significantly due to league bylaw changes. These assets attract PE firms with their strong returns and diversification benefits, especially in economic uncertainty. PE provides long-term value through franchise ownership,...

This paper fills a gap in the gender diversity and initial public offering (IPO) withdrawal literature by examining how female directors on boards of management at the time of offering, affect withdrawal risk. The study employs a global dataset encompassing 33,535 withdrawn and completed IPOs between January 1995 and December 2019 in 22 diverse cou...

The pension fund administrators (PFAs) are saddled with the responsibility to manage and invest pension contributions on behalf of employees through investment in securities and the earnings from the investments. The PFAs are constantly faced with the problem of the optimization of financial performance of assets to make investment on. In line with...

Professional investors usually lack the rights and opportunities provided by corporate law regarding the management of a company and the methods of recouping their investments. Shareholders’ agreements help fill this gap in modern practice. They have evolved over the 20th century, shifting from being completely prohibited to being recognized by law...

Research Summary This study reviews four decades of fragmented and contradictory empirical literature on the real effects of private equity (PE) buyouts on portfolio companies, differentiating between efficiency and growth outcomes. We hypothesize how institutional forces, including regulatory, cognitive, and normative institutions explain heteroge...

Much of the debate over whether fund managers attempt to subvert the evaluation procedure to their advantage has focused on private equity buyout funds. This study provides new evidence that bears directly on this ongoing debate by investigating private equity funds that invest in commercial real estate. Three key questions motivate the exercise in...

FinanceQA is a testing suite that evaluates LLMs' performance on complex numerical financial analysis tasks that mirror real-world investment work. Despite recent advances, current LLMs fail to meet the strict accuracy requirements of financial institutions, with models failing approximately 60% of realistic tasks that mimic on-the-job analyses at...

Is the formation of investor networks associated with superior fund performance? Our analysis of more than 2,000 private equity real estate (PERE) funds over three decades reveals abnormal performance among PERE funds dominated by institutional investor cliques. Specifically, investor cliques with a more extensive history of joint investment are as...

Purpose We examine the impact of private equity on corporate governance across industries and countries. Design/methodology/approach We gathered data from 15 countries and 16 industries spanning the period from 2005 to 2015 to construct an average corporate governance index and track private equity deals across both industries and countries. We an...

This paper explores why the financialisation of physician practices by private equity (PE) and the resulting value extraction from Germany’s solidarity-based healthcare system go largely unexamined in healthcare studies and regulation, despite contestation by medical associations. It contributes to feminist political-economic critiques of finance’s...

Pension Fund Administrators (PFAs) play an essential part in the management of pension funds that guarantee retirees’ comfortability and welfare after life of active service years. The PFAs constantly encounter problems associated with investment decision making and optimization of financial performance of their invested assets classes to provide g...

This paper delves into the comprehensive understanding of Alternate Investment Funds (AIFs) in the Indian financial market. The study addresses several key objectives, which include: evaluating the level of awareness and understanding among investors with respect to AIFs, assessing the risks and returns that go along with these investment vehicles,...

This paper investigates the influence of institutional dynamics and governance structures on private equity investment in Saudi Arabia, with a particular focus on corporate social responsibility (CSR). In the context of Saudi Arabia's evolving regulatory framework under Vision 2030, the study examines how both formal institutions, such as legal reg...

Predictive analytics has become a transformative force in the financial industry, offering the potential to revolutionize decision-making and enhance investment strategies, particularly in the realm of alternative investments. This article explores the application of predictive analytics in two key areas of alternative investments: hedge funds and...

Effective legacy planning necessitates a comprehensive approach to asset management, ensuring long-term financial well-being for future generations. This study investigates the role of diversification in legacy planning by conducting a comparative analysis of alternative and traditional assets.This study also explores the significance of diversific...

The private equity industry is in its early stages of development and has huge potential for future development. In the specific training of private equity talents in schools, we have encountered many difficulties. The first thing we face is the formulation of a private equity training program. The private equity direction of our school's finance i...

With the development of the capital market, most companies will choose to go public to obtain financing and information resources, and private equity investment has a non-negligible impact on the IPO underpricing of enterprises while supporting the listing of enterprises. Based on previous researches, this paper explores the impact of private equit...

Introduction Private equity (PE) investment in health care has increased more than 250% between 2010 and 2020. This is mirrored by an increasing number of published materials in medical journals. The objective of our study was to identify and characterize trends and key themes seen within publications discussing the topic of PE investment into orth...

This study examines how different management practices affect firm performance, with a particular focus on the moderating role of ownership structures. Utilizing secondary data from the World Management Survey, we analyze the management practices of 2,927 firms across 18 countries over seven years. Our findings suggest that ownership structure sign...

En este artículo se analizan las operaciones de los fondos de inversión en el sector agroalimentario español en los últimos años, así como las transformaciones que han impulsado. Se dedica especial atención a la participación de los fondos de capital privado (private equity) en el sector de frutas frescas y hortalizas. Tomando como marco de referen...

Research background: Private equity is used to finance family businesses in different forms and stages of the development cycle. The immanent characteristics of family businesses, which are the desire to maintain economic independence and to carry out succession, are at odds with the nature of private equity investment, which involves taking equity...

This paper outlines a comprehensive investment strategy developed for Horizon Investments Corp., integrating modern portfolio theory with real-world financial insights to construct a diversified and resilient portfolio. Drawing upon key theoretical frameworks such as Modern Portfolio Theory (MPT) and the Capital Asset Pricing Model (CAPM), the stud...

This paper will focus primarily on liquidity, volume, and volatility while examining these variables mostly independently of one another and then ultimately meeting as a relationship exists, within the scope of the private equity cash-and-stock deal. Due to limitations in access to certain databases, further research is needed to fully understand w...

The leveraged buyout (LBO) market, a cornerstone of private equity, is known for its cyclical nature, marked by periods of intense competition and eventual downturns. This paper introduces the predator-prey dynamics framework, derived from ecological models, to analyze these market fluctuations. By drawing parallels between aggressive investors and...

The Value Examiner (November/December 2024): All business acquirer types—whether private equity groups, individual buyers, synergistic buyers, or industry buyers—evaluate a company’s core attributes, or the ‘DNA,’ before proceeding with an acquisition. Business infrastructure, one of the four foundational elements of a business model alongside offe...

This paper examines the optimal security design and financing structure for investment funds, considering investors with heterogeneous risk preferences. The private equity (PE) fund serves as an information intermediary that plays a crucial role in aligning incentives and facilitating financing activities. To address the potential misalignment betw...

Predicting financial performance, particularly in the Trust and Private Equity sectors, is a critical challenge for investors and analysts, as it directly impacts decision-making and risk management. This study addresses this problem by proposing a novel solution using stacked generalization, an ensemble learning technique, to improve the accuracy...

Secondary buyouts (SBOs) appear paradoxical because the surge in SBO activity is met with scepticism from the public and investors regarding their performance. In this paper, we undertake a comprehensive analysis of SBO performance through two distinct lenses: First, we address the prevailing notion of SBOs as “lemons”. These are perceived as oppor...

The objectives of this paper are to reflect and assess infrastructure as an asset class and to analyse the regulatory changes that are underway to allow institutional investors to play a larger role in infrastructure investment. The methodology to address the objectives was a systematic review of infrastructure-related literature and case study ana...

This study investigates private equity (PE), a crucial segment of the global financial ecosystem where funds and investors directly invest in private companies or buy out public companies. Unlike public equity markets, PE offers essential capital for growth, restructuring, and management buyouts, predominantly from institutional investors and high-...

With the rapid development of China's economy, private equity funds have become an important force to help unlisted small and medium-sized startups quickly become bigger and stronger. As an important financing channel for enterprises, private equity funds can provide a large amount of financial support for target enterprises, and in all aspects of...

Brett Christophers’ neues Buch Our lives in their portfolios, das die „Asset-Management-Gesellschaft“ analysiert, zählt zweifellos zu den wichtigsten aktuellen Büchern über die gesellschaftlichen Veränderungen durch den Finanzkapitalismus. Es beleuchtet die Kurzsichtigkeit und wiederholte Leichtgläubigkeit (städtischer) Entscheidungsträger gegenübe...

The private equity industry has long relied on conventional tools and strategies to execute leveraged buyouts (LBOs), a core mechanism for value creation through acquisitions. However, with the advent of large language models (LLMs), the traditional landscape of LBOs is undergoing a revolutionary transformation. These models, powered by advancement...

This paper investigates the role of private equity (PE) in failed‐bank resolutions after the 2008 financial crisis, using proprietary Federal Deposit Insurance Corporation failed‐bank acquisition data. PE investors made substantial investments in underperforming and riskier failed banks, particularly in geographies where local banks were also distr...

Investments in Geothermal Energy Development Projects (GEPs) are still considered high-risk and capital-intensive with unpredictable completion even amidst the adoption of Public Private Partnership (PPP) financing models particularly in sub-Saharan Africa (SSA). Numerous GEP completion bottlenecks affecting timely project completion have been docu...

Trata-se de um estudo descritivo, quantitativo que utilizou como base de dados as informações de Fundos de Investimento em Participações (FIP) e registros de 49 companhias apoiadas por Private Equity (PE) e Venture Capital (VC) no Brasil, entre os anos de 2000 e 2020, que realizaram IPO e foram totalmente desinvestidas. Os resultados apresentam que...

Private equity plays a pivotal role in fostering entrepreneurship, innovation, and job creation across many economies. In Morocco, the private equity sector is in its developmental stage and faces significant macroeconomic challenges that hinder its growth. This study seeks to address the gap in the literature by examining how key macroeconomic fac...

This research proposes a method to test and estimate change points in the covariance structure of high-dimensional multivariate series data. Our method uses the trace of the beta matrix, known as Pillai’s statistics, to test the change in covariance matrix at each time point. We study the asymptotic normality of Pillai’s statistics for testing the...

Private equity (PE) firms play an increasingly important role in healthcare. Yet, existing research remains uneven, mostly focused on the United States and on certain sectors such as nursing homes. Some geographical areas and health specialties remain under-explored. This brief paper outlines a research agenda focusing on three key issues: (1) PE's...

Female-founded businesses struggle to attract private investment but seem to attract more within the sport industry. The purpose of this exploratory study was to examine this discrepancy and determine what factors contribute to private funding of female-owned sport businesses. This study examined 440 female-founded sport-related businesses with a f...

Uit een grootschalig onderzoek naar eigendomsoverdracht van familiebedrijven blijkt dat bij bijna de helft van de eigenaren de wens bestaat om het bedrijf binnen de familie te behouden. Steeds meer eigenaren van familiebedrijven staan echter open voor verkoop aan een strategische partij dan wel aan private equity. Ruim een kwart van de eigenaren va...

Venture capital (VC) and private equity (PE) have fueled the entrepreneurial ecosystem, which has developed as a pillar of economic growth and innovation. These investment vehicles are more than just financial tools; they are strategic facilitators that help startups at every stage of their journey, from conception to growth, management, and eventu...

The authors are illustrating specific experimental results of the private equity project for non-profit organizations (NPO), based on the contribution of finance professionals, researchers, innovators, teachers, designers, and practitioners interested in providing the possibility of generally accepted physical activity, aimed at creating a robust,...

This article proposes ethical — and legal — accountability for lawyers representing clients such as private equity (PE) firms who create ownership structures for nursing home systems. Using PE ownership as a case study, I will show that nursing home residents are often harmed and Medicaid costs inflated. I propose private law provides tools to comp...

Improving financial openness and international economic cooperation requires the adoption of international financial reporting standards, or IFRS. There have been attempts in Uzbekistan to adopt IFRS for national financial reporting, specifically for the balance sheet or "statement of financial position." The structure and content of financial repo...

Over the past four decades, China’s real estate industry has experienced rapid growth, accompanied by frequent regulatory interventions. These shifts present an ideal context for examining the characteristics of private equity placements (PEPs) under varying industrial policy environments. This study examines the PEPs of Chinese real estate firms f...

Venture Capital (VC) has become a chosen tool of investment in the areas of business where there seems to be potent promise but yet immature in terms of market, customer acceptance and political dynamics. Such uncertainties make bankers both nervous and hesitant,and where the risk takers like venture capitals thrive. In the first part of the articl...

This was a presentation given at the 'Who Owns Childcare? Who Should Own Childcare? symposium at the University of Manitoba

Sustainable Finance encompasses the investment process which integrates and encourages environment, and social considerations. By 2031, Sustainable Finance market is projected to expand to US $23 trillion. By sharing data about top 10 ESG funds in India along with their sectoral exposure, in addition to Leading Sustainable Finance Private Equity pl...

Lors de son introduction dans le Code monétaire et financier, la Société de libre partenariat (SLP) avait déçu les acteurs du Private Equity avec une fiscalité héritée du Fonds Professionnel de Capital Investissement (FPCI), entraînant un traitement fiscal identique au Fonds professionnel spécialisé (FPS) constitué sous forme de Fonds commun de pla...

A relatively small number of for-profit asset managers—financial intermediaries that invest capital on behalf of other investors—have emerged in recent decades to become some of the most influential commercial actors in the global political economy. Despite their important role in society, asset managers have received little attention from a public...

Existing Industrial Relations (IR) research suggests that Private Equity (PE) takeovers may have profound effects on the target firm's industrial relations policies and practices, most notably in terms of security of tenure and relative proclivity to engage in redundancies. This study supplements the literature by exploring the effects of PE takeov...

The rapid evolution of financial markets demands innovative approaches to navigate complexities and uncover valuable insights. Leveraged buyouts (LBOs), a pivotal aspect of private equity, present unique challenges requiring sophisticated analysis of market dynamics, risk profiles, and financial opportunities. This article explores the application...

Indian agriculture is focusing on shifting its approach to agribusiness systems to make agriculture a viable livelihood option. Many policy changes and mainstreaming activities of government and non-government agencies are encouraging to provide agriculture with an entrepreneurial touch. Recent research also focuses on studying and recommending dyn...

This research paper examines the performance of leading private equity firms as compared to prominent companies within the S&P 500. By analyzing specific case studies, the paper illustrates the unique strategies employed by successful private equity firms and how these strategies yield varying performance levels compared to traditional public compa...

Turnaround financing is a crucial tool for distressed companies aiming to recover from financial difficulties and restore long-term viability. This article explores the key financial, legal, and operational aspects involved in turnaround strategies, highlighting both successful and failed case studies. The discussion begins by examining various fin...