Combining Banking with Private Equity Investing

Lily Fang, Victoria Ivashina and Josh Lerner

No 19300, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Bank-affiliated private equity groups account for 30% of all private equity investments. Their market share is highest during peaks of the private equity market, when the parent banks arrange more debt financing for in-house transactions yet have the lowest exposure to debt. Using financing terms and ex-post performance, we show that overall banks do not make superior equity investments to those of standalone private equity groups. Instead, they appear to expand their private equity engagement to take advantage of the credit market booms while capturing private benefits from cross-selling of other banking services.

JEL-codes: G0 G21 G24 (search for similar items in EconPapers)
Date: 2013-08
Note: CF
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (32)

Published as Lily Fang & Victoria Ivashina & Josh Lerner, 2013. "Combining Banking with Private Equity Investing," Review of Financial Studies, vol 26(9), pages 2139-2173.

Downloads: (external link)
http://www.nber.org/papers/w19300.pdf (application/pdf)

Related works:
Journal Article: Combining Banking with Private Equity Investing (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:19300

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19300

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().