This article studies the return effects seen on listed private equity funds, which are the result of exit events of portfolio companies. It shows that private equity as an asset class has long been connected to sophisticated investors, including high-net-worth institutions or individuals. It then hypothesizes that exit announcements cause significantly positive share price reactions and provides data that was gathered from all exit announcements made by firms. This article determines that the hypothesis is true, and that it is due to the fact that a better price may be achieved in an IPO.

Asset class, Exit announcements, Exit events, Listed private equity funds, Portfolio companies, Return effects
dx.doi.org/10.1093/oxfordhb/9780195391589.013.0023, hdl.handle.net/1765/83452
Rotterdam School of Management (RSM), Erasmus University

Müller, G, & Teixeira de Vasconcelos, M. (2012). Listed Private Equity and the Case of Exits. doi:10.1093/oxfordhb/9780195391589.013.0023