Venture Capital and Other Private Equity: A Survey

Andrew Metrick and Ayako Yasuda

No 16652, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We review the theory and evidence on venture capital (VC) and other private equity: why professional private equity exists, what private equity managers do with their portfolio companies, what returns they earn, who earns more and why, what determines the design of contracts signed between (i) private equity managers and their portfolio companies and (ii) private equity managers and their investors (limited partners), and how/whether these contractual designs affect outcomes. Findings highlight the importance of private ownership, and information asymmetry and illiquidity associated with it, as a key explanatory factor of what makes private equity different from other asset classes.

JEL-codes: G24 (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-cfn, nep-cta, nep-ent and nep-mic
Note: AP CF
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as “Venture Capital and other Private Equity: a Survey” (wi th Ayako Yasuda), European Financial Management 17, 619 - 654 .

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Related works:
Journal Article: Venture Capital and Other Private Equity: a Survey (2011)
Working Paper: Venture Capital and Other Private Equity: A Survey (2010)
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