- Series Information
- The Private Equity Contract
- Direct Investments in Private Firms by Institutional Investors: Issues And Evidence
- The Size and Internal Structure of Private Equity Firms
- Leveraged Buyouts and Public-to-Private Transactions
- Private Equity and Public Corporations
- Private Equity Governance and Financing Decisions
- Syndicate Partner Selection: who Syndicates with Whom?
- Industry Concentration, Syndication Networks, and Competition in the U.K. Private Equity Market for Management Buyouts
- A Competition Law Analysis of Private Equity “Club Deals”
- The Real Effects of Private Equity Buyouts
- Buyouts in Western European Countries: The Impact on Company Growth and Innovation
- The Limits of Private Equity: Evidence from Denmark
- Private Equity: Value Creation and Performance
- Do Private Equity Fund-of-Funds Managers Provide Value?
- Fund Size, Limited Attention, and Private Equity Valuation
- Private Equity Investors, Corporate Governance, and Performance of Ipo Firms
- The Role of Private Equity in Private Acquisitions
- Private Equity Activism and the Consequences for Targets and Rivals In Germany
- The Costs of Issuing Private Versus Public Equity for Entrepreneurial Ventures
- Risk and Return Characteristics of Listed Private Equity
- Listed Private Equity: A Genuine Alternative for an Alternative Asset Class
- Listed Private Equity and the Case of Exits
- Buyouts Around the World
- Leveraged Buyouts and Control-Oriented Investments in Asia
- Private Equity in China
Abstract and Keywords
This article studies the return effects seen on listed private equity funds, which are the result of exit events of portfolio companies. It shows that private equity as an asset class has long been connected to sophisticated investors, including high-net-worth institutions or individuals. It then hypothesizes that exit announcements cause significantly positive share price reactions and provides data that was gathered from all exit announcements made by firms. This article determines that the hypothesis is true, and that it is due to the fact that a better price may be achieved in an IPO.
Götz Müller is a PhD candidate at University Witten/Herdecke. He studied business administration at Rotterdam School of Management, Erasmus University. His current research interests include family businesses, private equity, and organizational change.
Manuel Vasconcelos is a PhD candidate in finance at Rotterdam School of Management, Erasmus University. His research interests include corporate takeovers and divestitures, private equity, and capital structure.
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