How private equity firms are designed to earn big while risking little of their own

Appelbaum, Eileen and Batt, Rosemary (2017) How private equity firms are designed to earn big while risking little of their own. LSE Business Review (23 Jan 2017). Blog Entry.

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Abstract

Private equity firms are financial actors that sponsor investment funds that raise billions of dollars each year. The funds typically buy out high-performing companies using high amounts of debt and plan to resell them in a five-year window – promising investors outsized returns in the process. They propose to do this through a combination of operational improvements and financial engineering techniques that extract resources from companies, often leaving them financially vulnerable.

Item Type:	Online resource (Blog Entry)
Official URL:	http://blogs.lse.ac.uk/businessreview/
Additional Information:	© 2017 The Author(s)
Divisions:	LSE
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management H Social Sciences > HG Finance
Date Deposited:	02 Jun 2017 10:50
Last Modified:	14 Sep 2024 03:49
URI:	http://eprints.lse.ac.uk/id/eprint/79702

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