The Economics of Private Equity: A Critical Review
51 Pages Posted: 15 Feb 2024 Last revised: 6 Dec 2024
Date Written: February 12, 2024
Abstract
Over the past half century, private equity has grown into a $3 trillion asset class. In this review, I critically synthesize the main insights of the academic literature on private equity, with a special focus on the performance of private equity as an asset class and its track record of value creation. I also review key aspects of investing in private equity that are of relevance and concern to investors when forming and managing a portfolio of private equity funds.
Keywords: Private equity, value creation, investor returns
JEL Classification: G23, G24, G32, G11
Suggested Citation: Suggested Citation
Ljungqvist, Alexander and Ljungqvist, Alexander, The Economics of Private Equity: A Critical Review (February 12, 2024). Swedish House of Finance Research Paper No. 24-07, Available at SSRN: https://ssrn.com/abstract=4723171 or http://dx.doi.org/10.2139/ssrn.4723171
Feedback
Feedback to SSRN