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Private Equity Indices Based on Secondary Market Transactions

November 12, 2018 Bilal 0

Private Equity Indices Based on Secondary Market Transactions https://ift.tt/2qvstRO Private Equity Indices Based on Secondary Market Transactions NBER Working Paper No. 25207 Issued in November 2018 NBER Program(s):Asset Pricing, Corporate Finance Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund’s final distribution. We propose a new approach to evaluating performance using actual prices paid for limited partner shares of funds in secondary markets. We construct indices of buyout and venture capital performance using a proprietary database of secondary market […]

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When Investor Incentives and Consumer Interests Diverge: Private Equity in Higher Education — by Charlie Eaton, Sabrina Howell, Constantine Yannelis

September 4, 2018 Bilal 0

When Investor Incentives and Consumer Interests Diverge: Private Equity in Higher Education — by Charlie Eaton, Sabrina Howell, Constantine Yannelis https://ift.tt/2LUyhg0 When Investor Incentives and Consumer Interests Diverge: Private Equity in Higher Education NBER Working Paper No. 24976 Issued in August 2018 NBER Program(s):Corporate Finance, Economics of Education, Labor Studies, Productivity, Innovation, and Entrepreneurship This paper uses private equity buyouts to study a transition from lower- to higher-powered profit-maximizing incentives in higher education, a sector heavily dependent on government subsidy. Private equity owners have especially high-powered incentives to maximize profits. In a subsidized industry, this could intensify focus on capturing […]