Found 11 article(s) for author 'Victoria Ivashina'

Patient Capital: The Challenges and Promises of Long-Term Investing

Patient Capital: The Challenges and Promises of Long-Term Investing. Victoria Ivashina, Josh Lerner, 2019, Book, “How to overcome barriers to the long-term investments that are essential for solving the world’s biggest problems. There has never been a greater need for long-term investments to tackle the world’s most difficult problems, such as climate change and decaying infrastructure. And it is increasingly unlikely that the public sector will be willing or able to fill this gap. If these critical needs are to be met, the major pools of long-term, patient capital—including pensions, sovereign wealth funds, university endowments, and wealthy individuals and families—will have to play a large role. In this accessible and authoritative account of long-term capital investment, two leading experts on the subject, Harvard Business School professors Victoria Ivashina and Josh Lerner, highlight the significant hurdles facing long-term investors and propose concrete ways to overcome these difficulties.Link

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Looking for Alternatives: Pension Investments around the World, 2008 to 2017

Looking for Alternatives: Pension Investments around the World, 2008 to 2017. Victoria Ivashina, Josh Lerner, August 24, 2018, Paper, “Using hitherto-unexplored data, this paper provides a first look into pension funds’ allocations to alternative asset classes around the world. On average, in the ten years following the financial crisis, allocations to private equity and real estate nearly doubled, representing about 20% of assets under management in 2017 for pensions in many of the largest economies. Our sample indicates a $1.8 trillion shift to alternatives between 2008 and 2017. This phenomenon equally affected public and private pension funds, as well as funds of all sizes. This shift does not appear to be a consequence of mechanical factors such as increase in drawn capital or expected returns, but rather reflects a proactive portfolio allocation response to perceived investment opportunities. The extent of the shift to Alts is more pronounced for nations with lower long-term interest rate environment.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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The Ownership and Trading of Debt Claims in Chapter 11 Restructurings

The Ownership and Trading of Debt Claims in Chapter 11 Restructurings. Victoria Ivashina, June 5, 2015, Paper. “Using a novel data set that covers individual debt claims against 136 bankrupt US companies and includes information on a subset of claims transfers, we provide new empirical insight regarding how a firm’s debt ownership relates to bankruptcy outcomes. Firms with higher debt concentration at the start of the case are more likely to file prearranged bankruptcy plans, to move quickly through the restructuring process, and to emerge successfully as independent going concerns. Moreover, higher ownership concentration within a debt class is associated with higher recovery rates to that class. Trading of claims during bankruptcy concentrates ownership further, but this trading is not associated with subsequent improvements in bankruptcy outcomes and could, at the margin, increase the likelihood of liquidation.Link

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Large Banks and the Transmission of Financial Shocks

Large Banks and the Transmission of Financial Shocks, Victoria Ivashina, December 15, 2014, Paper, We explore the role of large banks in propagating economic shocks across the U.S. economy. We show that in 2007 and 2008, large banks that were operating in U.S. counties most affected by the drop in real estate prices, contracted their credit to small businesses in counties that were not affected by falling real estate prices, relative to healthy banks. These exposed banks were also more likely to completely cease operations in these unaffected counties. On the other hand, healthy banks were more likely to expand operations and even enter new banking markets. This offsetting effect is stronger for counties with bigger spillover effects and resulted in changes in market share composition that had lasting effect. The results are robust across a range of filters, including exclusion of the ten largest U.S. banks from the sampleLink

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Financial Repression in the European Sovereign Debt Crisis

Financial Repression in the European Sovereign Debt Crisis. Victoria Ivashina , April 25, 2014, Paper. “By the end of 2013, the share of government debt held by the domestic banking sectors of Eurozone countries was more than twice its 2007 level. We show that this type of increasing reliance on the domestic banking sector for absorbing government bonds generates a crowding out of corporate lending. For a given domestic firm, new debt is less likely to be a loan—i.e., the loan supply contracts—when local banks have purchased more domestic sovereign debt and when that debt is risky (as measured by CDS spreads)…” Link Verified October 11, 2014

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The Disintermediation of Financial Markets: Direct Investing in Private Equity

The Disintermediation of Financial Markets: Direct Investing in Private Equity. Victoria Ivashina, Josh Lerner, January 13, 2014, Paper. “This is the first large-sample study of direct private equity investments by institutional investors. The analysis uses a proprietary dataset of all such investments by seven large institutional investors over twenty years. Despite the substantial fee discounts, we find little evidence of attractive relative performance by direct investments. In particular, co-investments underperform traditional fund investments…” May require purchase or user account. Link Verified October 11, 2014

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Dollar Funding and the Lending Behavior of Global Banks

Dollar Funding and the Lending Behavior of Global Banks. Jeremy Stein, Victoria Ivashina, David Scharfstein, November 2012, Paper. “A large share of dollar-denominated lending is done by non-U.S. banks, particularly European banks. We present a model in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because these banks rely on wholesale dollar funding, while raising more of their euro funding through insured retail deposits, the shock leads to a greater withdrawal of dollar funding. Banks can borrow in euros and swap into dollars to make…” (May require user account or purchase) Link

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