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• Case | HBS Case Collection | August 2019

  PROOF: Pro Rata Opportunity Fund

  Josh Lerner, Shai Bernstein and Terrence Shu

  Citation:

  Lerner, Josh, Shai Bernstein, and Terrence Shu. "PROOF: Pro Rata Opportunity Fund." Harvard Business School Case 820-030, August 2019.  View Details

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• Book | 2019

  Patient Capital: The Challenges and Promises of Long-Term Investing

  Victoria Ivashina and Josh Lerner

  There has never been a greater need for long-term investments. And it is increasingly unlikely that the public sector will be willing or able to fill the gap. Those best positioned to address the long-run needs are likely to be the pools of capital in the hands of pensions, insurers, sovereign wealth funds, endowments, and families. In addition to their long time frames, these institutions command enormous sums. Yet, in many cases, despite the abundance of capital and substantial need for returns, long-term investments have been problematic at best. Building on recent academic research, our own work, and many discussions with practitioners, this book outlines the key challenges facing long-term investments and suggests ways to address them. Over the past several decades, “private equity” has been the primary way in which longer-term illiquid investments have been made. In dissecting the motivations and actions of the key actors in the world of long-run investing, we have taken a careful look at traditional fund models, but we also analyzed other ways to pursue concentrated and long-term investments.

  Keywords: long-term investing; large investors; Capital; Investment; Strategic Planning; Problems and Challenges; Opportunities; Society;

  Citation:

  Ivashina, Victoria, and Josh Lerner. Patient Capital: The Challenges and Promises of Long-Term Investing. First ed. Princeton, NJ: Princeton University Press, 2019.  View Details

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• Article | Review of Financial Studies | April 2019

  Private Equity and Financial Fragility during the Crisis

  Shai Bernstein, Josh Lerner and Filippo Mezzanotti

  Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows. The effects are stronger among financially constrained companies and those whose private equity investors had more resources at the onset of the crisis. PE-backed companies consequentially experienced higher asset growth and increased market share during the crisis.

  Keywords: Private Equity; Financial Crisis; Performance; Financial Condition;

  Citation:

  Bernstein, Shai, Josh Lerner, and Filippo Mezzanotti. "Private Equity and Financial Fragility during the Crisis." Review of Financial Studies 32, no. 4 (April 2019): 1309–1373. (Earlier version distributed as National Bureau of Economic Research Working Paper No. 23626 and Harvard Business School Working Paper No. 18-005.)  View Details

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