Found 26 article(s) for author 'Josh Lerner'

An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity

An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity. Josh Lerner, Fall 2017, Paper, “The authors use transaction-level data to compare the dispersion of private equity (PE) returns in emerging markets (EMs) to the same in developed markets (DMs). They regress within-market absolute deviation from the mean on an EM indicator and controls. They find evidence suggesting that the distribution of transaction-level TVPI has lower variance within EMs than within DMs, although with some caveats. The results suggest opportunities for further research exploring the relative riskiness of EM PE.Link

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Venture Capital Data: Opportunities and Challenges

Venture Capital Data: Opportunities and Challenges. Josh Lerner, 2017, Book Chapter, “Start-ups and other entrepreneurial ventures make a significant contribution to the US economy, particularly in the tech sector, where they comprise some of the largest and most influential companies. Yet for every high-profile, high-growth company like Apple, Facebook, Microsoft, and Google, many more fail. This enormous heterogeneity poses conceptual and measurement challenges for economists concerned with understanding their precise impact on economic growth.Link

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Private Equity and Financial Fragility during the Crisis

Private Equity and Financial Fragility during the Crisis. Josh Lerner, 2017, Paper, “Does private equity increase financial fragility during economic crises? To investigate this issue, we examine the financial decisions and performance of private equity-backed companies in the United Kingdom during the 2008 financial crisis. We find that PE-backed companies experienced a smaller decline in investment, relative to a carefully selected control group. PE-backed companies also experienced a larger increase in debt and equity issuances, while overall leverage remained unchanged. The effects are particularly strong for companies that were more likely to be financially constrained and those where private equity sponsors were more likely to have resources to help the portfolio company. The results are consistent with the hypothesis that PE sponsors relax financing constraints during a sudden tightening of credit markets and inconsistent with the hypothesis that private equity increase financial fragility during periods of financial turmoil.Link

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Private Equity and Industry Performance

Private Equity and Industry Performance. Josh Lerner, March 2017, Paper, “The growth of the private equity industry has spurred concerns about its potential impact on the economy more generally. This analysis looks across nations and industries to assess the impact of private equity on industry performance. Industries where PE funds have invested in the past five years have grown more quickly in terms of productivity and employment. There are few significant differences between industries with limited and high private equity activity. It is hard to find support for claims that economic activity in industries with private equity backing is more exposed to aggregate shocks. The results using lagged private equity investments suggest that the results are not driven by reverse causality. These patterns are not driven solely by common law nations such as the United Kingdom and United States, but also hold in Continental Europe.Link

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Conclusion: Time for Participatory Budgeting to Grow Up

Conclusion: Time for Participatory Budgeting to Grow Up. Josh Lerner, February 13, 2017, Paper, “Only a few years ago, participatory budgeting (PB) in the US was in its infancy, a tiny experiment in democracy. After a five-year growth spurt, PB has entered its awkward adolescence, full of bold achievements, flashes of potential, and some stumbles. PBNYC’s innovation has raised new questions for participatory democracy, as the contributors to this special issue highlight. In this article, I lift up the key impacts and challenges that they discuss, and their practical implications. I argue that for PBNYC and other PB processes to grow up, city leaders need to invest in equity, expand project eligibility and funding, and scale PB up to the city level.” Link

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Innovation Policy and the Economy: Introduction to Volume 17

Innovation Policy and the Economy: Introduction to Volume 17. Josh Lerner, 2017, Paper, “This volume is the Seventeenth annual volume of the National Bureau of Economic
Research (NBER) Innovation Policy (IPE) group. The IPE group seeks to provide an accessible
forum to bring the work of leading academic researchers to an audience of policymakers and
those interested in the interaction between public policy and innovation.Link

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Budgeting for Equity: How Can Participatory Budgeting Advance Equity in the United States?

Budgeting for Equity: How Can Participatory Budgeting Advance Equity in the United States? Josh Lerner, 2016, Paper, “Participatory budgeting (PB) has expanded dramatically in the United States (US) from a pilot process in Chicago’s 49th ward in 2009 to over 50 processes in a dozen cities in 2015. Over this period, scholars, practitioners, and advocates have made two distinct but related claims about its impacts: that it can revitalize democracy and advance equity. In practice, however, achieving the latter has often proven challenging. Based on interviews with PB practitioners from across the US, we argue that an equity-driven model of PB is not simply about improving the quality of deliberation or reducing barriers to participation. While both of these factors are critically important, we identify three additional challenges…Link

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Private Equity in Emerging Markets: Yesterday, Today, and Tomorrow

Private Equity in Emerging Markets: Yesterday, Today, and Tomorrow. Josh Lerner, May 2016, Paper, “General partners of private equity entered emerging markets in the 1990s seeking diversification and returns, and their investment has increased substantially since then. Manager selection remains important because there is a wide range of returns across funds of the same vintage, and minority LP (limited partner) investments are found to perform the same as or better than majority investments.Link

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Pay Now or Pay Later? The Economics within the Private Equity Partnership

Pay Now or Pay Later? The Economics within the Private Equity Partnership. Victoria Ivashina, Josh Lerner, March 26, 2016, Paper. “The article focuses on the importance of equity partnerships that are essential to the professional service and investment sectors. It examines private equity partnerships and shows that the allocation of fund economics to individual partners is divorced. It mentions that departures of senior partners have negative effects on the ability of funds to raise additional capital.Link

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Pay Now or Pay Later?: The Economics within the Private Equity Partnership

Pay Now or Pay Later?: The Economics within the Private Equity Partnership. Victoria Ivashina, Josh Lerner, March 2016, Paper, “The economics of partnerships have been of enduring interest to economists, but many issues regarding intergenerational conflicts and their impact on the continuity of these organizations remain unclear. We examine 717 private equity partnerships, and show that (a) the allocation of fund economics to individual partners is divorced from past success as an investor, being instead critically driven by status as a founder, (b) the underprovision of carried interest and ownership–and inequality in fund economics more generally–leads to the departures of senior partners, and (c) the departures of senior partners have negative effects on the ability of funds to raise additional capital.Link

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