The Value of Specialization in Private Equity
| Autor: | Spaenjers, Christophe, Steiner, Eva Maria |
|---|---|
| Přispěvatelé: | Ecole des Hautes Etudes Commerciales (HEC Paris), Smeal College of Business, Pennsylvania State University (Penn State), Penn State System-Penn State System, HEC Paris Research Paper Series |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
JEL: G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G24 - Investment Banking • Venture Capital • Brokerage • Ratings and Ratings Agencies
firm ownership real estate investment performance JEL: G - Financial Economics/G.G1 - General Financial Markets/G.G1.G11 - Portfolio Choice • Investment Decisions [SHS.GESTION]Humanities and Social Sciences/Business administration JEL: R - Urban Rural Regional Real Estate and Transportation Economics/R.R3 - Real Estate Markets Spatial Production Analysis and Firm Location/R.R3.R33 - Nonagricultural and Nonresidential Real Estate Markets private equity JEL: G - Financial Economics/G.G3 - Corporate Finance and Governance/G.G3.G32 - Financing Policy • Financial Risk and Risk Management • Capital and Ownership Structure • Value of Firms • Goodwill |
| Popis: | We show that PE sector specialists outperform generalists at every stage of the investment life cycle. Using granular data for thousands of U.S. hotels over the last two decades, we document that specialists exert a greater positive influence on more margins of hotel operations, earn higher net cash flows over the holding period, and achieve larger capital gains upon exit than do their generalist peers and other, non-PE investors backing ex ante equivalent assets. By contrast, PE generalists’ strongest comparative advantage may be better access to attractively priced acquisition financing. Our results provide novel evidence on the heterogeneity of PE investment strategies and associated performance outcomes. |
| Databáze: | OpenAIRE |
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