PE vs PLC Boards Research Findings Summary

Over recent years, Private Equity (PE) owned businesses have become an increasingly important part of the business landscape. The enterprise value of Private Equity backed businesses compared to that of public companies doubled to 5.1% in the United States from 1995 to 2006 and increased from 1.1% to 3.0% in Europe over the same period (source: McKinsey analysis), and Private Equity owned companies accounted for over 1 million employees in the UK or 6% of the private sector workforce at the end of 2007 (source: BVCA).

The growing willingness of major pension funds and institutions to invest in PE reflects the success that leading buyout funds have had over the years. Most academic studies suggest that, as an overall asset class, PE returns net of fees have been similar or marginally worse than those delivered from public markets over the last 15 to 20 years...

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