Background Note | HBS Case Collection | 2011 (Revised from original 2003 version)

Between a Rock and a Hard Place: Valuation and Distribution in Private Equity

by G. Felda Hardymon, Josh Lerner and Ann Leamon

Abstract

Introduces the issues attendant to valuing privately held portfolios and distributing thinly traded stock. Although they have existed since the beginning of the formal venture capital industry, they have received increasing amounts of attention as the money invested in private equity has grown. Presents the perspectives of the many participants in the industry.

Keywords: Venture Capital; Private Equity; Stocks; Investment Portfolio; Valuation; Financial Services Industry;

Citation:

Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Between a Rock and a Hard Place: Valuation and Distribution in Private Equity." Harvard Business School Background Note 803-161, March 2011. (Revised from original February 2003 version.)