PE Replication

DailyAlts’ premiere premium research letter designed to mirror the performance of today’s leading private equity firms. This strategy combines strong-cash flow, real estate assets, business development companies, and real assets to consistently provide share appreciation upside and extraordinary income.



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Northwestern Study: Private Equity Helped During Great Recession

Study shows that private equity’s leverage is a good thing when times get tough A Northwestern study notes that debt during a recession can be a very bad thing. But it reveals much more about the role of private equity. It seems leveraged companies with private equity backing can show success when times get tough. Professor Filippo Mezzanotti of the Kellogg School of Management at Northwestern University has published a study. Its results show that leveraged companies with PE backers actually did much better than their peers during the Great Recession. Having deep-pocketed private equity firms that still had lots of cash to invest were able to draw on financing that was unavailable form the banking system or Wall Street and were able to invest the dollars needed to keep the business running and growing when businesses without such backing found financing difficult if not impossible to secure. Beyond the Northwestern Study Mezzanoti and his co-authors Shai Bernstein of Stanford University and Josh Lerner of Harvard University examined the performance of companies in the United Kingdom during the recession. He chose the U.K. over the U.S. because British discourse laws made it easier to accumulate and study the data. In interview…

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Northwestern Study: Private Equity Helped During Great Recession
September 9, 2019

Study shows that private equity’s leverage is a good thing when times get tough A Northwestern study notes that debt during a recession can be a very bad thing. But it…