TheNewDemographyofPrivateEquity-December2007教程.pdf

The new demography of private equity* Per Strömberg Swedish Institute for Financial Research, Stockholm School of Economics, CEPR, and NBER December 18, 2007 Abstract This paper analyzes global leveraged buyout (LBO) activity, exit behaviour, and holding periods using a data set of more than 21,000 LBO transactions 1970-2007. We estimate the total value of the firms acquired in these transactions to $3.6 trillion, out of which $2.7 trillion represents LBOs undertaken after 2000. We document a large increase in the geographical and industry scope of LBO transactions over time. Most LBO activity consists of acquisitions of private rather than public firms and LBOs provide a net positive flow of firms to public markets over the long-run. LBO holding periods are longer than what has been documented in previous research. Only 8% of firms stay in LBO ownership for less than two years and the median firm stays in LBO ownership for about 9 years. LBO transactions sponsored by more experienced private equity partnerships tend to stay in LBO ownership for a shorter period of time, are more likely to go public, and are less likely to end in bankruptcy or financial restructuring. I am grateful to Ulf Axelson, Francesca Cornelli, Steven Kaplan, Josh Lerner, and the WEF Private Equity Research Team and Advisory Board for valuable comments. Chris Allen, Joakim Bång, Reimo Juks, Geraldine Kim, Jakob Nylin, and Sarah Woolverton provided excellent research assistance. In his seminal paper “The eclipse of the public corporation”, Jensen (1989) predicte