Abstract
This article draws on and summarizes the findings of our earlier published article, “Private Equity and Long-run Investment: The Case of Innovation,”Journal of Finance Vol. 66 No. 2 (2011). We thank Geraldine Kim, Jodi Krakower, Sanjey Sivanesan, and especially Sarah Woolverton for assistance with this project. The World Economic Forum and Harvard Business School's Division of Research provided financial support for this research. We are grateful for helpful comments from participants at the American Economic Association, European Finance Association, NBER Summer Institute, and Western Finance Association meetings, the World Economic Forum “Global Economic Impact of Private Equity” project, and participants in various seminars, especially Bronwyn Hall, Laura Lindsey, Paul Oyer, Mark Schankerman, and John van Reenen. Many thanks also to Don Chew, Campbell Harvey and two anonymous referees, whose comments greatly improved the paper. All errors and omissions are our own.