This book presents a history and analysis of the emergence and development of private equity finance in the UK and the USA in the context of changing liquidity conditions since the 1970s.This book is focused on a recent issue of public concern (private equity) and links this to the wider issue of the credit crisis. It provides a thorough account go the development of private equity finance in terms of changing regulation, investment practices and cultures over 40 years. It also provides a clear and simple account of how financial gearing works in leveraged buyouts and also a clear explanation of different kinds of financial instrument and the role of debt of credit markets that should be extremely useful to lay readers, students and academics who are not experts in economics/finance (sociologists, management organization specialists etc).This book provides an analysis of the dominant theories of private equity finance buyouts and places these in terms of broader political economy theories of market instabilities and also issues of moral philosophy (entitlement).This book traces the historical rise of private equity finance in the US and UK over the last 40 years. It shows how this new industry has grown as credit markets have grown. It is clearly explained for the non-expert how financial gearing works in a leveraged buyout.
The Emergence of Private Equity Finance in the US: Leveraged Buyouts, Institutional Investment, Junk Bonds and the Thrifts; Constraints on the Growth of Private Equity Finance: The Emergence of Private Equity Finance in the UK and its Recovery in the US; The Expansion of Private Equity Finance in the UK in the Late 1990s and the US Context of the Collapse of the dot.com boom; PEF Buyouts in the Twenty First Century: Liquidity and the Credit Crunch; The Role of Fees and Gearing in Leveraged Buyouts; Theories of Leveraged Buyouts and Theories of Market Instability; The Empirical Arguments for Specific Benefits of Private Equity: Returns to Investors, Employment, and Tax; Alliance Boots as an Illustration of the Dynamics of Private Equity: Issues of Entitlement, Governance and the Values of Value.