Private equity finance : rise and repercussions / Jamie Morgan.

Format:

Book

Author/Creator:

Morgan, Jamie, 1969-

Language:

English

Subjects (All):

Private equity--United States.

Private equity.

Private equity--Great Britain.

Venture capital--United States.

Venture capital.

United States.

Venture capital--Great Britain.

Great Britain.

Physical Description:

viii, 309 pages ; 23 cm

Place of Publication:

Basingstoke [England] ; New York : Palgrave Macmillan, [2009]

Summary:

In 2007 private equity finance became a major issue of public concern in the UK. The failed bid to buy J. Sainsbury and the successful bid to buy Alliance Boots highlighted that private equity finance had reached a new level in its purchasing power. The controversy regarding private equity finance split into two lines of argument: were they benevolent entrepreneurs or predatory asset strippers? This book traces the historical rise of private equity finance in the US and UK over the last 40 years. It shows how this new industry has grown as credit markets have evolved. It provides a clear account of how a buyout works, of how buyouts have been theorized, and of the various emprical claims made for private equity finance. Looking at private equity in terms of its overall context of development provides an opportunity to ask a series of questions. Is private equity finance a claimed solution to problems it helps to create? Is it a claimed solution that creates new, unnecessary, problems? Does it create moral issues of entitlement?

Contents:

Chapter 1 The Emergence of Private Equity Finance in the US: Leveraged Buyouts, Institutional Investment, Junk Bonds and the Thrifts 13

Chapter 2 Constraints on the Growth of Private Equity Finance: The Emergence of Private Equity Finance in the UK and its Recovery in the US 39

Chapter 3 The Expansion of Private Equity Finance in the UK in the Late 1990s and the US Context of the Collapse of the dot.com Boom 68

Chapter 4 Private Equity Finance in the Twenty First Century: Liquidity and the Credit Crunch 92

Chapter 5 The Role of Fees and Gearing in Leveraged Buyouts 136

Chapter 6 Theories of Leveraged Buyouts and Theories of Market Instability 153

Chapter 7 The Empirical Arguments for Specific Benefits of Private Equity: Returns to Investors, Employment, and Tax 179

Chapter 8 Alliance Boots as an Illustration of the Dynamics of Private Equity: Issues of Entitlement, Governance and the Values of Value 208.

Notes:

Includes bibliographical references (pages 290-302) and index.

ISBN:

9780230207103

0230207103

OCLC:

235024615