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Private Equity Research Paper

Organizers: Serge Darolles (Université Paris-Dauphine and CREST) René Garcia (Edhec Business School and University of Montreal) Christian Gouriéroux (CREST and University of Toronto)

This academic meeting will take place in Paris during January 19-20, 2017. Academic sessions will cover the latest researches on asset management. We welcome submissions on hedge funds, mutual funds and private equity funds, but also, more broadly, papers that seek to improve the understanding of the roles of different market intermediaries and the effect of their behaviour on asset prices.

TOPICS: Potential topics include, but are not limited to: Hedge fund risks and performance; transparency (reporting) and due diligence; hedge fund activity and broad macroeconomic issues such as systemic risk and contagion; hedge fund activism; portfolio liquidation and liquidity; financial regulation; mutual funds, private equity funds; etc. The organization will make available limited accommodation and travelling grants for doctoral
students.

PAPER SUBMISSION PROCEDURE: A (preliminary) version of the paper must be sent to traore@ensae.fr by September 30, 2016. Decisions will be communicated by October 31, 2016.

Submission Deadline: September 30, 2016

SCIENTIFIC COMMITTEE: V. Agarwal (Georgia State University), C. Cao (Penn State University), S. Darolles (Université Paris-Dauphine and CREST), R. Garcia (Edhec Business School), C. Gourieroux (CREST and University of Toronto), A. Patton (Duke University), R. Sadka (Boston College).

 

Organisateur

  • Serge Darolles (Université Paris-Dauphine and CREST) René Garcia (Edhec Business School and University of Montreal) Christian Gouriéroux (CREST and University of Toronto)

Lieu

Université Paris Dauphine Place du Maréchal de Lattre de Tassigny,Paris,Paris 75016 France

Private Equity and Industry Performance

by Shai Bernstein, Josh Lerner, Morten Sørensen & Per Strömberg

In response to the global financial crisis that began in 2007, governments worldwide are rethinking their approach to regulating financial institutions. Among the financial institutions that have fallen under the gaze of regulators have been private equity (PE) funds. There are many open questions regarding the economic impact of PE funds, many of which cannot be definitively answered until the aftermath of the buyout boom of the mid-2000s can be fully assessed. HBS professor Josh Lerner and coauthors address one of these open questions, by examining the impact of PE investments across 20 industries in 26 major nations between 1991 and 2007. In particular, they look at the relationship between the presence of PE investments and the growth rates of productivity, employment, and capital formation. Key concepts include: It is still too early to assess the consequences of the economic conditions in 2008 and 2009, a period where the decrease of investment and absolute volume of distressed private equity-backed assets was far greater than in earlier cycles. Despite this caveat, it appears that: PE investments are associated with faster growth. There is little evidence that economic fluctuations are exacerbated by the presence of PE investments. In industries with PE investments, there are few significant differences between industries with a low and high level of PE activity. Activity in industries with PE backing appears to be no more volatile in the face of industry cycles than in other industries, and sometimes less so. The reduced volatility is particularly apparent in employment. These patterns continue to hold when the focus is on the impact of private equity in continental Europe, where concerns about these investments have been most often expressed. Closed for comment; 0 Comment(s) posted.