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Organizational forms and risk of listed private equity

Lahr, Henry and Herschke, Florian T. (2009). Organizational forms and risk of listed private equity. The Journal of Private Equity, 13(1) pp. 89–99.

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This article investigates the stock performance of listed private equity and develops a classification of vehicles according to their organizational structure. The authors identify and examine 274 liquid listed private equity entities in the period from 1986 to 2008. The listed private equity shows a Dimson beta of 1.7 without any significant excess return, and vehicles differ strongly depending on their organizational form. Market risk is high in internally managed vehicles but low in externally managed ones. The authors conclude that different sources of cash flows, such as management fees and carried interest, can account for these risk characteristics. Precautions must be taken, therefore, when using specific listed private equity vehicles as a proxy for traditional private equity funds.

Item Type: Journal Item
Copyright Holders: 2009 Euromoney Institutional Investor PLC.
ISSN: 1096-5572
Keywords: private equity; organizational structure; cash flow; investments; bond market
Academic Unit/School: Faculty of Business and Law (FBL) > Business > Department for Accounting and Finance
Faculty of Business and Law (FBL) > Business
Faculty of Business and Law (FBL)
Item ID: 39921
Depositing User: Henry Lahr
Date Deposited: 11 Apr 2014 13:29
Last Modified: 07 Dec 2018 10:22
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