| 来源类型 | Working Paper |
| 规范类型 | 报告 |
| DOI | 10.3386/w12826 |
| 来源ID | Working Paper 12826 |
| Why are Buyouts Levered: The Financial Structure of Private Equity Funds | |
| Ulf Axelson; Per Stromberg; Michael S. Weisbach | |
| 发表日期 | 2007-01-11 |
| 出版年 | 2007 |
| 语种 | 英语 |
| 摘要 | This paper presents a model of the financial structure of private equity firms. In the model, the general partner of the firm encounters a sequence of deals over time where the exact quality of each deal cannot be credibly communicated to investors. We show that the optimal financing arrangement is consistent with a number of characteristics of the private equity industry. First, the firm should be financed by a combination of fund capital raised before deals are encountered, and capital that is raised to finance a specific deal. Second, the fund investors' claim on fund cash flow is a combination of debt and levered equity, while the general partner receives a claim similar to the carry contracts received by real-world practitioners. Third, the fund will be set up in a manner similar to that observed in practice, with investments pooled within a fund, decision rights over investments held by the general partner, and limits set in partnership agreements on the size of particular investments. Fourth, the model suggests that incentives will lead to overinvestment in good states of the world and underinvestment in bad states, so that the natural industry cycles will be multiplied. Fifth, investments made in recessions will on average outperform investments made in booms. |
| 主题 | Financial Economics ; Corporate Finance |
| URL | https://www.nber.org/papers/w12826 |
| 来源智库 | National Bureau of Economic Research (United States) |
| 引用统计 | |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/570491 |
| 推荐引用方式 GB/T 7714 | Ulf Axelson,Per Stromberg,Michael S. Weisbach. Why are Buyouts Levered: The Financial Structure of Private Equity Funds. 2007. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| w12826.pdf（445KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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