The Future of Private Equity

Lerner, Josh

doi:10.1111/j.1468-036X.2010.00589.x

The Future of Private Equity

European Financial Management, Vol. 17, Issue 3, pp. 423-435, 2011

13 Pages Posted: 31 May 2011

See all articles by Josh Lerner

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

Date Written: June 2011

Abstract

After a period of robust growth, the private equity industry has experienced a marked decline. In the wake of the 2008 economic crisis, the future of the venture and buyout industries seems unclear. This speech discusses four possible scenarios for the future of the private equity industry by examining the short‐ and long‐run determinants of private equity supply and demand. Possible scenarios include Recovery, Back to the Future, The Limited Partners' Desertion, and A Broken Industry. Although support is given for each of the scenarios, a clear prediction for the future remains difficult. The future of the private equity market is likely to be the subject of debate for some time to come.

Keywords: private equity, venture capital, buyout funds

JEL Classification: G1, G2

Suggested Citation: Suggested Citation

Lerner, Josh, The Future of Private Equity (June 2011). European Financial Management, Vol. 17, Issue 3, pp. 423-435, 2011. Available at SSRN: https://ssrn.com/abstract=1854159 or http://dx.doi.org/10.1111/j.1468-036X.2010.00589.x