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  • 2009
  • Working Paper
  • HBS Working Paper Series

Private Equity and Industry Performance

By: Josh Lerner
  • Format:Print
  • | Language:English
  • | Pages:40
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Abstract

The growth of the private equity industry has spurred concerns about its potential impact on the economy more generally. This analysis looks across nations and industries to assess the impact of private equity on industry performance. Industries where PE funds have invested in the past five years have grown more quickly in terms of productivity and employment. There are few significant differences between industries with limited and high private equity activity. It is hard to find support for claims that economic activity in industries with private equity backing is more exposed to aggregate shocks. The results using lagged private equity investments suggest that the results are not driven by reverse causality. These patterns are not driven solely by common law nations such as the United Kingdom and United States, but also hold in Continental Europe.

Keywords

Private Equity; Investment; Common Law; Industry Growth; Performance Productivity; Europe; United Kingdom; United States

Citation

Lerner, Josh. "Private Equity and Industry Performance." Harvard Business School Working Paper, No. 10-045, December 2009. (NBER Working Paper Series, No. 14861, April 2009.)

About The Author

Josh Lerner

Entrepreneurial Management
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More from the Author
  • DigiPlex: Ante-Up or Cash Out By: Josh Lerner and James Mason
  • Yale Investments Office: November 2020 By: Josh Lerner, Jo Tango and Alys Ferragamo
  • Apax Partners and Duck Creek Technologies By: Josh Lerner, Terrence Shu and Alys Ferragamo
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