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.
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.
This research symposium brings together leading professionals and academics to focus on global issues in private equity.
The Spring Research Symposium will focus on IPC’s three research initiatives in private equity, commercial real estate, and broader issues of active management.
 

Latest Research

Private Investments in Diversified Portfolios

January 29, 2021

We study the impact of including private investment funds into diversified portfolios that otherwise hold only public stocks and bonds. Our analysis uses a large sample of 3,380 U.S. buyout, venture capital, and real estate funds to simulate portfolios from 1987 to 2018 that substitute part of the public equity allocation with private funds. More

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

Recent News & Media

IPC is Pleased to Announce a Data Partnership with the Hedge Fund Research and Intelligence Organization PivotalPath

January 29, 2021

Today, IPC announces a data partnership with PivotalPath, a hedge fund research and intelligence organization, which, we believe, establishes a similar growth path for research in hedge funds. More