What Is Private Equity?
A specialist firm, the manager, runs a fund; the fund often buys a company outright, which is a buyout.
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1.What is private equity, in the video's words?
A specialist firm, the manager, runs a fund; the fund often buys a company outright, which is a buyout.
2.A study tracked 3,200 US firms bought from 1980 to 2005. What did it find on jobs?
It reports large increases in both jobs created and jobs destroyed.
3.At one made-up site, 12 jobs end and 11 begin. What is the net change?
The net change is minus 1, but 23 jobs moved.
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Sources (7)
- Kaplan, S. N., Stromberg, P.: Leveraged Buyouts and Private Equity, Journal of Economic Perspectives 23(1), 121-146 (Winter 2009)
- SEC: Glossary (Small Business Resources): Private Equity Fund, Management Fees, Performance Fees, Carried Interest
- Davis, S. J., Haltiwanger, J., Handley, K., Jarmin, R., Lerner, J., Miranda, J.: Private Equity, Jobs, and Productivity, American Economic Review 104(12), 3956-3990 (2014)
- Harris, R. S., Jenkinson, T., Kaplan, S. N.: Private Equity Performance: What Do We Know?, Journal of Finance 69(5), 1851-1882 (2014); NBER Working Paper 17874 (2012)
- Phalippou, L., Gottschalg, O.: The Performance of Private Equity Funds, Review of Financial Studies 22(4), 1747-1776 (2009)
- SEC: Accredited Investors (Small Business Resources)
- Eigene Rechnung: Gebuehrenbeispiel 2
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