Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Working Knowledge
Business Research for Business Leaders
  • Browse All Articles
  • Popular Articles
  • Cold Call Podcast
  • Managing the Future of Work Podcast
  • About Us
  • Book
  • Leadership
  • Marketing
  • Finance
  • Management
  • Entrepreneurship
  • All Topics...
  • Topics
    • COVID-19
    • Entrepreneurship
    • Finance
    • Gender
    • Globalization
    • Leadership
    • Management
    • Negotiation
    • Social Enterprise
    • Strategy
  • Sections
    • Book
    • Podcasts
    • HBS Case
    • In Practice
    • Lessons from the Classroom
    • Op-Ed
    • Research & Ideas
    • Research Event
    • Sharpening Your Skills
    • What Do You Think?
    • Working Paper Summaries
  • Browse All
    What’s Behind the Private Equity Boom?
    22 Dec 2006Research & Ideas

    What’s Behind the Private Equity Boom?

    by Jim Aisner
    Podcast: On just one day in November, $52 billion worth of private equity deals were announced, and more than $200 billion worth of deals have been agreed to so far in 2006. The deals include such major names as Qantas ($8.7 billion), Hertz ($15 billion), and Clear Channel ($ 18.7 billion). Are public markets being eclipsed? Are investors and employees being victimized? Professor Josh Lerner looks at historical trends and current deals to put it all in perspective. Key concepts include:
    • An influx of money on the equity side from pension funds and overseas investors is helping create an explosion of LBOs.
    • Hedge funds have joined banks as major providers of debt, creating a market with more favorable terms for investors.
    • Although there have been deals that have gone sour, the private equity boom can be seen as mostly beneficial for both investors and the companies involved.
    LinkedIn
    Email
    • Podcast with: Josh Lerner
    • Interviewer: James Aisner
    • Running Time: 15 min., 56 sec.
      Trending
        • 23 Jun 2022
        • Research & Ideas

        All Those Zoom Meetings May Boost Connection and Curb Loneliness

        • 06 Aug 2021
        • Book

        Steve Jobs and the Rise of the Celebrity CEO

        • 28 Jun 2022
        • Book

        The Moral Enterprise: How Two Companies Profit with Purpose

        • 22 Jun 2022
        • Book

        Four Elements for Finding the Right Career Path

        • 18 Apr 2022
        • HBS Case

        Dick’s Sporting Goods Followed Its Conscience on Guns—and It Paid Off

    Josh Lerner
    Josh Lerner
    Jacob H. Schiff Professor of Investment Banking
    Contact
    Send an email
    → More Articles
    Find Related Articles
    • Finance
    • Financial Services

    Sign up for our weekly newsletter

    Interested in improving your business? Learn about fresh research and ideas from Harvard Business School faculty.
    ǁ
    Campus Map
    Harvard Business School Working Knowledge
    Baker Library | Bloomberg Center
    Soldiers Field
    Boston, MA 02163
    Email: Editor-in-Chief
    →Map & Directions
    →More Contact Information
    • Make a Gift
    • Site Map
    • Jobs
    • Harvard University
    • Trademarks
    • Policies
    • Accessibility
    • Digital Accessibility
    Copyright © President & Fellows of Harvard College