Venture Capital and Other Private Equity: A Survey / Andrew Metrick, Ayako Yasuda.

Format:

Book

Author/Creator:

Metrick, Andrew.

Contributor:

National Bureau of Economic Research.

Yasuda, Ayako.

Series:

Working Paper Series (National Bureau of Economic Research) no. w16652.

NBER working paper series no. w16652

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Venture Capital and Other Private Equity

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

We review the theory and evidence on venture capital (VC) and other private equity: why professional private equity exists, what private equity managers do with their portfolio companies, what returns they earn, who earns more and why, what determines the design of contracts signed between (i) private equity managers and their portfolio companies and (ii) private equity managers and their investors (limited partners), and how/whether these contractual designs affect outcomes. Findings highlight the importance of private ownership, and information asymmetry and illiquidity associated with it, as a key explanatory factor of what makes private equity different from other asset classes.

Notes:

Print version record

December 2010.