We improve public understanding of the role of private capital in the global economy. Academic and industry experts work together to generate new knowledge about private capital markets based on objective academic research.
Commercial real estate is a major asset class, with an estimated value of more than $12 trillion in the U.S. alone. But the stay-at-home orders and business closures precipitated by the COVID-19 pandemic have the potential to negatively – and disastrously – affect commercial properties.
Investors want access to the best performing assets for their portfolios. Driven by the strong performance of private investment funds in recent decades, many providers of defined-contribution (DC) investment services have advocated for broader access to private investments in these plans, such as 401(k)s.
This paper examines leverage and debt financing in the private equity buyout market. We provide an overview of how debt is utilized in buyout investment structures and a review of existing theoretical and empirical academic literature.
The Private Equity Research Consortium and the Institute for Private Capital (IPC) at the University of Oxford, Saïd Business School plan to host the 2021 Spring Private Equity Research Symposium on May 27 & 28.
 

Latest Research

Debt and Leverage in Private Equity: A Survey of Existing Results and New Findings

January 04, 2021

This paper examines leverage and debt financing in the private equity buyout market. We provide an overview of how debt is utilized in buyout investment structures and a review of existing theoretical and empirical academic literature. The analysis also includes results from new data sources with information on deal structure and performance since the global financial crisis (GFC). We document that leverage ratios (Net Debt / EBITDA) have increased substantially in recent years and the increase is even more pronounced after unwinding EBITDA “adjustments” which have become increasingly large. More

Should defined contribution plans include private equity investments?

December 01, 2020

Investors want access to the best performing assets for their portfolios. Driven by the strong performance of private investment funds in recent decades, many providers of defined-contribution (DC) investment services have advocated for broader access to private investments in these plans, such as 401(k)s. More

Has Persistence Persisted in Private Equity? Evidence from Buyout and Venture Capital Funds

November 02, 2020

We present new evidence on the persistence of U.S. private equity (buyout and venture capital) funds using cash-flow data sourced from Burgiss’s large sample of institutional investors. Previous research, studying largely pre-2000 data, finds strong persistence for both buyout and venture capital (VC) firms. Using ex post or most recent fund performance (as of June 2019), we confirm the previous findings on persistence overall as well as for pre-2001 and post-2000 funds. More

Recent News & Media

Debt and Leverage in Private Equity: A Survey of Existing Results and New Findings

January 04, 2021

This paper examines leverage and debt financing in the private equity buyout market. We provide an overview of how debt is utilized in buyout investment structures and a review of existing theoretical and empirical academic literature. The analysis also includes results from new data sources with information on deal structure and performance since the global financial crisis (GFC). We document that leverage ratios (Net Debt / EBITDA) have increased substantially in recent years and the increase is even more pronounced after unwinding EBITDA “adjustments” which have become increasingly large. More