Secondary Buyouts: Operating Performance and Investment Determinants

Stefano Bonini

doi:10.1111/fima.12086

Secondary Buyouts: Operating Performance and Investment Determinants

Stefano Bonini

School of Business

Research output: Contribution to journal › Article › peer-review

27 Scopus citations

Abstract

Secondary buyouts (SBOs) now represent over 60% of the overall buyout activity. In this paper, I investigate the possible determinants of such spectacular growth. I find that first round buyers generate a large and significant abnormal improvement in operating performance. In contrast, SBO operating growth is not different from that of its peer group. Returns to secondary private equity (PE) investors are positive, but significantly lower than those of first round buyers. I examine several alternative drivers of SBOs and find that favorable credit market conditions and PE reputation drive secondary investment volume.

Original language	English
Pages (from-to)	431-470
Number of pages	40
Journal	Financial Management
Volume	44
Issue number	2
DOIs	https://doi.org/10.1111/fima.12086
State	Published - 1 Jun 2015

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10.1111/fima.12086

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Secondary Buyouts: Operating Performance and Investment Determinants

Abstract

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