The Oxford Handbook of Private Equity

by Douglas Cumming (Editor)

Overview

The term private equity typically includes investments in venture capital or growth investment, as well as late stage, mezzanine, turnaround (distressed), and buyout investments. It typically refers to the asset class of equity securities in companies that are not publicly traded on a stock exchange. However, private equity funds do in fact make investments in publicly held companies, and some private equity funds are even publicly listed. Chapters in this book cover both private and public company investments, as well as private and publicly listed private equity funds.

This Handbook provides a comprehensive picture of the issues surrounding the structure, governance, and performance of private equity. It comprises contributions from 41 authors based in 14 different countries. The book is organized into seven parts, the first of which covers the topics pertaining to the structure of private equity funds. Part II deals with the performance and governance of leveraged buyouts. Part III analyzes club deals in private equity, otherwise referred to as syndicated investments with multiple investors per investees. Part IV provides analyses of the real effects of private equity. Part V considers the financial effects of private equity. Part VI provides analyzes of listed private equity. Finally, Part VII provides international perspectives on private equity.

Product Details

ISBN-13:	9780195391589
Publisher:	Oxford University Press
Publication date:	03/22/2012
Series:	Oxford Handbooks
Pages:	768
Product dimensions:	7.00(w) x 9.90(h) x 1.70(d)

About the Author

Douglas Cumming, JD, PhD, CFA, is a Professor of Finance and Entrepreneurship and the Ontario Research Chair at the Schulich School of Business, York University. His research is primarily focused on venture capital, private equity, IPOs, law and finance, market surveillance, and hedge funds. He has published more than seventy-five refereed papers in leading journals and is the coauthor (with Sofia Johan) of Venture Capital and Private Equity Contracting: An International Perspective. He has consulted for a variety of governmental and private organizations in Australasia, Europe, and North America.

Table of Contents

Contents

Part I. Introduction

Chapter 1
"Introduction to the Oxford University Press Handbook of Private Equity"
Douglas Cumming, York University Schulich School of Business

Part II. The Structure of Private Equity Funds

Chapter 2
"The Private Equity Contract"
Steven Davidoff, University of Connecticut School of Law

Chapter 3
"Direct Investments in Private Firms by Institutional Investors: Issues and Evidence"
Kasper Meisner Nielsen, Hong Kong University of Science and Technology

Chapter 4
"The Size and Internal Structure of Private Equity"
Dodo zu Knyphausen-Aufseß, Technischen Universität Berlin, Marc Koehnemann, Siegwerk Druckfarben AG, and Florian Willert, Technischen Universität Berlin

Part III. Leveraged Buyouts: Structure, Governance and Performance

Chapter 5
"Leveraged Buyouts and Public-to-Private Transactions"
Luc Renneboog, Tilburg University

Chapter 6
"Private Equity and Public Corporations"
Jerry Cao, Singapore Management University

Chapter 7
"Private Equity Governance and Financing Decisions"
Simona Zambelli, University of Bologna


Part IV. Private Equity Syndication

Chapter 8
"Syndicate Partner Selection: Who Syndicates with Whom?"
Peter Roosenboom, Erasmus University Rotterdam School of Management, and Bram van den Bosch, Erasmus University Rotterdam School of Management

Chapter 9
"Industry Concentration, Syndication Networks and Competition in the UK Private Equity Market for Management Buyouts"
Miguel Meuleman, Vlerick Leuven Gent Management School, Mike Wright, Nottingham Business School

Chapter 10
"A Competition Law Analysis of Private Equity 'Club Deals'"
Faysal Barrachdi, Houthoff Buruma N.V., Amsterdam

Part V. Real Effects of Private Equity

Chapter 11
"The Real Effects of Private Equity Buyouts"
Joacim Tåg, Research Institute of Industrial Economics, Stockholm

Chapter 12
"Buyouts in Western European Countries: The Impact on Company Growth and Innovation"
Elisa Ughetto, Politechnico de Torino

Chapter 13
"The Limits of Private Equity: Evidence from Denmark"
Thomas Poulsen, Copenhagen Business School, and Steen Thomsen, Copenhagen Business School

Part VI. Financial Effects of Private Equity

Chapter 14
"Private Equity: Value Creation and Performance"
Christian Graf, Technische Universität München, Christoph Kaserer, Technische Universität München, and Daniel Schmidt, Center of Private Equity Research (CEPRES) Munich

Chapter 15
"Do Private Equity Fund-of-Fund Managers Provide Value?"
April Knill, Florida State University

Chapter 16
"Fund Size, Limited Attention, and Valuation of Venture Capital and Private Equity Backed Firms"
Douglas Cumming, Schulich School of Business, York University, and Na Dai, SUNY Albany

Chapter 17
"Private Equity Investors, Corporate Governance and Performance of IPO Firms"
Igor Filatotchev, Cass Business School, City University London

Chapter 18
"The Role of Private Equity in Private Acquisitions"
Halit Gonenc, University of Groningen, and Koos Leisink, ABN AMRO Corporate Finance & Capital, Amsterdam

Chapter 19
"Private Equity Activism and the Consequences for Targets and Rivals in Germany"
Mark Mietzner, Darmstadt University of Technology, and Zeppelin University, and Denis Schweizer, WHU - Otto Beisheim Graduate School of Management


Chapter 20
"The Costs of Issuing Private versus Public Equity for Entrepreneurial Ventures"
Cécile Carpentier, Laval University, Jean-Francois L'Her, Caisse de depot et placement du Quebec, and Jean-Marc Suret, Laval University

Part VII. Listed Private Equity

Chapter 21
"Risk and Return Characteristics of Listed Private Equity"
Christopher Brown, J.P. Morgan Cazenove, and Roman Kraeussl, VU University Amsterdam

Chapter 22
"Listed Private Equity: A Genuine Alternative for an Alternative Asset Class"
Matthias Huss, LPX GmbH, and Heinz Zimmermann, University of Basel - Center for Economic Science

Chapter 23
"Listed Private Equity and the Case of Exits"
Götz Müller, University of Witten/Herdecke, and Manuel Vasconcelos, Erasmus University Rotterdam

Part VIII. International Perspectives on Private Equity

Chapter 24
"Buyouts around the World"
Christian Andres, Universität Mannheim, Andre Betzer, University of Wuppertal, and Jasmin Gider, University of Bonn

Chapter 25
"Leveraged Buyouts and Control Oriented Investments in Asia"
Grant Fleming, Continuity Capital Partners and Australian National University, and Mai Takeuchi, Wilshire Associates

Chapter 26
"Private Equity in China"
Takeshi Jingu, Nomura Institute of Capital Markets Research

Editorial Reviews

"Douglas Cumming, an international authority in the areas of entrepreneurial finance and venture capital, has successfully put together a collection of authoritative articles on private equity that help the reader to gain a deeper understanding about the structure, governance and performance of private equity. This very important handbook is a must read for students, researchers, and practitioners in the field of private equity."—John A. Doukas, Founding & Managing Editor of European Financial Management

From the Publisher