This article examines the post-financial crisis trends in the private equity industry. Although most research has followed the pre-crisis trends, we show that investors are
demanding the inclusion of more investor-favorable compensation terms in limited partnership agreements.
Our findings suggest that these new terms not only provide the
investors with more favorable management fee and profit distribution arrangements, but
also give them more control over the fund?s investment decisions. Importantly, the new
pattern also reveals the inclusion of more straightforward co-investment rights. Besides
the contractual ?improvements?, we observe that investors want to see more skin in the
game from the managers/general partners.
Institutional investors played a crucial role in the COVID-19 market crash. U.S. stocks with higher institutional ownership -- in particular, those held more by active, short-term, and domestic institutions -- performed worse. An analysis of...Read more
During the recent COVID-19 pandemic crisis, stock markets around the world have witnessed an abrupt decline in security prices and an unprecedented increase in security volatility. In response to a week of financial turmoil on the main European...Read more
This essay argues that, to address the Covid-19 crisis, in addition to creating a special temporary insolvency regime, relaxing provisions for companies in the vicinity of insolvency, and enabling companies to hold virtual meetings, policymakers...Read more
We survey law firms, firms and institutional investors to better understand their preferred method of intracorporate dispute resolution in Brazil. Consistent with a number of theories, we find that these organizations prefer arbitration to...Read more