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A Primer on Private Equity at Work

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  • Eileen Appelbaum
  • Rosemary Batt

Abstract

Targets of private equity usually have faster job growth than other companies before they are taken over. On average they also have higher rates of profitability. The claim that private equity mostly helps struggling companies is not borne out by the facts. Moreover, the investors who provide private equity firms with the capital typically make less money than if they had invested in a stock market index. Here is a much-needed primer on what private equity firms do.

Suggested Citation

  • Eileen Appelbaum & Rosemary Batt, 2012. "A Primer on Private Equity at Work," Challenge, Taylor & Francis Journals, vol. 55(5), pages 5-38.
    • Handle: RePEc:mes:challe:v:55:y:2012:i:5:p:5-38
    DOI: 10.2753/0577-5132550501
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    References listed on IDEAS

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    Cited by:

    1. Loris Guery & Anne Stevenot & Geoffrey T. Wood & Chris Brewster, 2017. "The Impact of Private Equity on Employment: The Consequences of Fund Country of Origin—New Evidence from France," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(4), pages 723-750, October.
    2. Edward Stringham & Jack Vogel, 2018. "The leveraged invisible hand: how private equity enhances the market for corporate control and capitalism itself," European Journal of Law and Economics, Springer, vol. 46(2), pages 223-244, October.
    3. Palcic, Dónal & Reeves, Eoin, 2013. "Private equity leveraged buyouts in European telecoms: The case of Eircom," Telecommunications Policy, Elsevier, vol. 37(6), pages 573-582.

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