Do Private Equity Investors Create Value? Evidence from the Hotel Industry
| Autor: | Eva Steiner, Christophe Spaenjers |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
History
Labour economics 050208 finance Polymers and Plastics Ex-ante Investment strategy business.industry 05 social sciences Real estate Industrial and Manufacturing Engineering Private equity 0502 economics and business Cash flow 050207 economics Business and International Management business Investment performance Comparative advantage Hotel industry |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| 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 |
| Externí odkaz: |
|