Venture Capital and Other Private Equity: A Survey

Andrew Metrick and Ayako Yasuda
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Ayako Yasuda: University of CA, Davis

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

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: G20 G24 G30 G32 G34 (search for similar items in EconPapers)
Date: 2010-12
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Citations: View citations in EconPapers (3)

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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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Persistent link: https://EconPapers.repec.org/RePEc:ecl:upafin:11-06

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