World Economic Forum Releases Report On Private Equity Industry

The World Economic Forum released the Globalization of Alternative Investments Working Papers Volume 2 The Global Economic Impact of Private Equity Report 2009, one of the most exhaustive studies of private equity involving thousands of companies going back to the

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The World Economic Forum released the Globalization of Alternative Investments Working Papers Volume 2: The Global Economic Impact of Private Equity Report 2009, one of the most exhaustive studies of private equity involving thousands of companies going back to the 1980s.

Among the chief findings of the report are that private equity-owned firms are, on average, better managed than government-, family- or privately owned firms. Firms acquired by private equity groups enjoy productivity growth 2% greater than average; in France, private equity funds act as an engine of growth for small and medium size enterprises. Private equity investment in emerging markets raised increasingly significant funds between 2004 and 2007. The research project included an international team of noted academics led by Josh Lerner, Jacob H. Schiff Professor of Investment Banking at Harvard Business School.

According to Lerner and Anuradha Gurung, Associate Director, Investors Industries, World Economic Forum, co-editors of the Working Papers, “this volume builds on the first volume of Working Papers, published in January 2008, which addressed the evolution of the private equity industry since the 1980s by including large-sample studies on such topics as the demography of private equity investments, the willingness of private equity-backed firms to make long-term investments and the impact of private equity activity on employment and governance. It is our hope it will be useful to policy-makers and industry leaders alike.”

“At our Annual Meeting 2009 in Davos-Klosters, heads of state, central bankers and finance ministers from over 60 countries, as well as chairmen and CEOs from over 200 of the world’s leading financial institutions engaged in discussions on how to revive economic growth and promote long-term financial stability,” says Max von Bismarck, director and head of investors iIndustries, World Economic Forum. “In the context of these ongoing efforts the Working Papers provide further insight into the role of private equity in the global economy.”

The current volume of Working Papers examines management practices adopted by private equity firms at portfolio companies, the impact of private equity activity on labour productivity; the impact of private equity investment in France; and the demography of private equity in emerging markets.

For more information, please visit http://www.weforum.org

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