Private Equity and Its ImpactThis book looks at the increase in leveraged buyouts (LBO) of U.S. companies by private equity funds prior to the slowdown in mid-2007 which has raised questions about the potential impact of these deals. Some praise LBOs for creating new governance structures for companies and providing longer term investment opportunities for investors. Others criticise LBOs for causing job losses and burdening companies with too much debt. This book addresses the effect of recent private equity LBOs on acquired companies and employment, the impact of LBOs jointly undertaken by two or more private equity funds on competition, the Securities and Exchange Commission's (SEC) oversight of private equity funds and their advisers, and regulatory oversight of commercial and investment banks that have financed recent LBOs. The U.S. Government Accountability Office (GAO) reviewed academic research, analysed recent LBO data, conducted case studies, reviewed regulators' policy documents and examinations, and interviewed regulatory and industry officials, and academics. The GAO recommends that the federal financial regulators give increased attention to ensuring that their oversight of leveraged lending at their regulated institutions takes into consideration systemic risk implications raised by changes in the broader financial markets. |
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academic acquired companies acquisition advisers American assets Baskin-Robbins Brands Capital Partners Carlyle Group carried interest CD&R Chairman club deals commercial and investment committee company's competition concerns corporate deal value Dealogic debt Dunkin economic employees examinations example Federal Reserve financial markets Global hedge funds Hertz identified increased industry institutions investing in private investment banks investors Josh Lerner Leveraged Buyouts leveraged finance leveraged lending leveraged loans million Neiman Marcus Nordco owners partnership pension funds pension plans percent performance potential premium private equity executives private equity firms private equity funds private equity investments private equity transactions private equity-sponsored LBOS profits public-to-private publicly traded recent LBOS regulators regulatory result reviewed risk-management Riverside Samsonite SEC staff share shareholders ShopKo ShopKo Stores strategy Sun Capital syndicated systemic risk target companies TPG Capital underwriting variables workers