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Leveraged Buyouts and Private Equity

  • Steven N. Kaplan
  • Per Strömberg

We describe and present time series evidence on the leveraged buyout / private equity industry, 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.

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File URL: http://www.nber.org/papers/w14207.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 14207.

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Date of creation: Jul 2008
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Publication status: published as Steven N. Kaplan & Per Stromberg, 2009. "Leveraged Buyouts and Private Equity," Journal of Economic Perspectives, American Economic Association, vol. 23(1), pages 121-46, Winter.
Handle: RePEc:nbr:nberwo:14207
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  17. Cem Demiroglu & Christopher M. James, 2008. "Lender control and the role of private equity group reputation in buyout financing," Proceedings 1081, Federal Reserve Bank of Chicago.
  18. Jensen, Michael C & Murphy, Kevin J, 1990. "Performance Pay and Top-Management Incentives," Journal of Political Economy, University of Chicago Press, vol. 98(2), pages 225-64, April.
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  22. Asquith, Paul, 1948- & Wizman, Thierry A., 1990. "Event risk, covenants, and bondholder returns in leveraged buyouts," Working papers WP 3173-90., Massachusetts Institute of Technology (MIT), Sloan School of Management.
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