JOURNAL OF ACCOUNTING AND FINANCE
Public vs. Private: Characteristics of the Companies Backed by Listed Private Equity
Author(s): M. Sinan Goktan, Erdem Ucar
Citation: M. Sinan Goktan, Erdem Ucar, (2012) "Public vs. Private: Characteristics of the Companies Backed by Listed Private Equity," Journal of Accounting and Finance, Vol. 12, Iss. 5, pp. 11 - 25
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Listed Private Equity (LPE) is growing as an alternative investment tool for those investors who would want exposure to private equity in their investment portfolios by purchasing public shares of LPEs that are invested in a group of private companies. We analyze the characteristics of the LPEs and the type of companies that LPEs tend to invest in. We show that the companies that LPE firms are investing in have different characteristics than the companies that receive funding from unlisted private equity firms. LPE firms tend to invest in these companies for a longer duration but there is no significant effect on the likelihood of taking these to public.