Learn More
A secondary buyout is a leveraged buyout (LBO) where the buyout sponsor, who had previously taken control of a target through an LBO, sells the target firm to another private equity firm or to a financial sponsor. Secondary buyouts, as a fraction of all buyouts, have grown from 13% in the 1980s to 35% in the last five years. I find that, compared to(More)
Over the last two decades, the number (enterprise value) of leveraged buyout transactions involving privately held targets totals 10,013 ($855 billion), accounting for 46% (21%) of the worldwide leveraged buyout market. Yet the vast majority of academic studies focus on the buyouts of publicly held targets. This paper investigates the motives for leveraged(More)
During the past decade, non-bank institutional investors are increasingly taking larger roles in the corporate lending than they historically have played. These non-bank institutional lenders typically have higher required rates of return than banks, but invest in the same loan facilities. In a sample of 20,031 leveraged loan facilities originated between(More)
A manager’s shareholders, board of directors, and potential future employers are continually assessing his ability. A rich literature has documented that this insight has profound implications for corporate governance because assessment generates incentives (good and bad), introduces assorted risks, and affects the various battles that rage among the(More)
The past decade has seen significant changes in the structure of the corporate lending market, with non-commercial bank institutional investors playing larger roles than they historically have played. In addition, non-commercial bank institutional lenders are often equity holders in their borrowing firms. In our sample of 11,137 tranches of institutional(More)
A manager’s current and potential future employers are continually assessing her or his ability. Such assessment is a crucial component of corporate governance and this chapter provides an overview of the research on that aspect of governance. In particular, we review how assessment generates incentives (both good and bad), generates risks that must be(More)
Frictions to efficient bargaining provide an opportunity for a hedge fund to invest in distressed firms, facilitate reorganizations, and capture some of the rents from doing so. This paper considers a sample of 184 financially distressed firms for the period from 1998 to 2009, and finds that distressed investing has become an important avenue for activism(More)
  • 1