DIW Berlin-Private Equity Investors Good or Evil

Abstract:

” The proposed analysis provides neither support for the ‘evil’ nor for the ‘angel’s hypothesis. We could not find strong signs that private equity investments are mainly motivated by the aim to add value. At the same time, we were unable to provide support for the view of PE investors as asset strippers. We find, however, that PE investors are quite normal investors that intend to avoid an observably high risk and shy away from vulnerable and possibly opaque firms“, Dörte Höppner, Secretary General, BVK.

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