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  • March 1988 (Revised June 1993)
  • Background Note

Leveraged Betas and the Cost of Equity

The objective is to delineate on methodology for measuring the risk associated with financial leverage and estimating its impact on the cost of equity capital. View Details
Keywords: Cost of Capital; Capital Structure; Equity
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Asquith, K. Paul. "Leveraged Betas and the Cost of Equity." Harvard Business School Background Note 288-036, March 1988. (Revised June 1993.)
  • 18 Sep 2017
  • News

Private Equity for Cheapskates Like You

  • 2010
  • Chapter

The Financing of R&D and Innovation

By: Bronwyn H. Hall and Josh Lerner
Evidence on the “funding gap” for investment innovation is surveyed. The focus is on financial market reasons for underinvestment that exist even when externality-induced underinvestment is absent. We conclude that while small and new innovative firms experience high... View Details
Keywords: Research and Development; Innovation and Invention; Venture Capital; Corporate Finance
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Hall, Bronwyn H., and Josh Lerner. "The Financing of R&D and Innovation." Chap. 14 in Handbook of the Economics of Innovation: Volume 1, by Bronwyn H. Hall and Nathan Rosenberg, 609–639. Amsterdam: Elsevier, 2010.
  • January 1994 (Revised April 2011)
  • Background Note

Note on Private Equity Partnership Agreements

By: Josh Lerner
Venture capital by necessity is a long-run investment. Consequently, since the mid-1960s virtually all venture financing has been raised through private partnerships with a ten-year or longer life span. To govern these investments, complex contracts have sprung up... View Details
Keywords: Venture Capital; Financing and Loans; Investment; Governance; Contracts; Partners and Partnerships
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Lerner, Josh. "Note on Private Equity Partnership Agreements." Harvard Business School Background Note 294-084, January 1994. (Revised April 2011.)
  • November 2024 (Revised December 2024)
  • Case

Moonfare and the Democratization of Private Equity

By: Victoria Ivashina and Srimayi Mylavarapu
Founded in 2016, Moonfare headquartered in Europe, was a pioneer in the “democratization” of private equity investments. Historically, private equity was accessible only to institutional investors like pension funds, endowments, sovereign wealth funds, and large family... View Details
Keywords: Private Equity; Customers; Wealth; Business Strategy; Segmentation; Technological Innovation; Product Launch; Financial Services Industry; Europe
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Ivashina, Victoria, and Srimayi Mylavarapu. "Moonfare and the Democratization of Private Equity." Harvard Business School Case 225-044, November 2024. (Revised December 2024.)
  • November 1994
  • Case

Spectrum Equity Investors, L.P.

Brion Applegate and Bill Collatos had already started a fund-raising campaign for their new venture-capital fund when the principals of a prestigious Wall Street investment bank asked them to become the two senior partners of an in-house $150 million fund. The case... View Details
Keywords: Venture Capital; Personal Development and Career; Entrepreneurship
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Timmons, Jeffry A., Elise C Martin, and Rebecca Voorheis. "Spectrum Equity Investors, L.P." Harvard Business School Case 295-021, November 1994.
  • 31 Jul 2014
  • News

Making Private Equity Public Knowledge

©Rick Friedman As Daniel Sheyner (MBA 2014) tells it, most private equity firms have a very specific target in mind when recruiting: "The best athletes." The highest-ranked investment banking and consulting analysts; the elite. "Goldman... View Details
Keywords: Dan Morrell
  • 24 Jun 2010
  • Working Paper Summaries

“An Unfair Advantage”? Combining Banking with Private Equity Investing

Keywords: by Lily Fang, Victoria Ivashina & Josh Lerner; Banking
  • April 2019
  • Article

Private Equity and Financial Fragility during the Crisis

By: Shai Bernstein, Josh Lerner and Filippo Mezzanotti
Do private equity firms contribute to financial fragility during economic crises? We find that during the 2008 financial crisis, PE-backed companies increased investments relative to their peers, while also experiencing greater equity and debt inflows. The effects are... View Details
Keywords: Private Equity; Financial Crisis; Performance; Financial Condition
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Bernstein, Shai, Josh Lerner, and Filippo Mezzanotti. "Private Equity and Financial Fragility during the Crisis." Review of Financial Studies 32, no. 4 (April 2019): 1309–1373. (Earlier version distributed as National Bureau of Economic Research Working Paper No. 23626 and Harvard Business School Working Paper No. 18-005.)
  • 23 Apr 2009
  • Working Paper Summaries

Does Public Ownership of Equity Improve Earnings Quality?

Keywords: by Dan Givoly, Carla Hayn & Sharon P. Katz
  • 2007
  • Chapter

Venture Capital and Private Equity

By: Paul A. Gompers
Keywords: Venture Capital; Private Equity
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Gompers, Paul A. "Venture Capital and Private Equity." In The Handbook of Corporate Finance: Empirical Corporate Finance, edited by Espen Eckbo. New York: Elsevier/North-Holland, 2002.
  • Article

Do Private Equity Firms Have Better Management Practices?

By: Nicholas Bloom, Raffaella Sadun and John Van Reenen
Using an innovative survey measure of management practices on over 15,000 firms, we find private equity firms are better managed than government, family, and privately owned firms, and have similar management to publicly listed firms. This is true both in developed and... View Details
Keywords: Private Equity; Management Practices and Processes
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Bloom, Nicholas, Raffaella Sadun, and John Van Reenen. "Do Private Equity Firms Have Better Management Practices?" American Economic Review: Papers and Proceedings 105, no. 5 (May 2015): 442–446.
  • January 2025
  • Case

Untapped Global: Financing Africa's Missing Middle

By: Raymond Kluender and Emanuele Colonnelli
In November 2024, Jim Chu, founder and CEO of Untapped Global, faced mounting internal tensions over the company’s strategic direction. Untapped had developed a data-driven revenue-based financing (RBF) model to address the “missing middle” problem—the $5.2 trillion... View Details
Keywords: Social Entrepreneurship; Venture Capital; Working Capital; Private Equity; Financial Strategy; Microfinance; International Finance; Currency Exchange Rate; Profit Sharing; Revenue; Developing Countries and Economies; Economic Growth; Emerging Markets; Mission and Purpose; Small Business; Entrepreneurial Finance; Banking Industry; Financial Services Industry; Information Technology Industry; Technology Industry; Africa; Nigeria; South Africa; Kenya; Uganda; California; San Francisco
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Kluender, Raymond, and Emanuele Colonnelli. "Untapped Global: Financing Africa's Missing Middle." Harvard Business School Case 825-056, January 2025.
  • Web

Finance - Faculty & Research

Finance Overview Faculty Curriculum Seminars & Conferences Awards & Honors Doctoral Students September 2025 Article Using Satellites and Phones to Evaluate and Promote Agricultural Technology Adoption: Evidence from Smallholder Farms in... View Details
  • May 2011 (Revised September 2015)
  • Background Note

A Note on Private Equity in Developing Countries

By: Josh Lerner, Ann Leamon and Abishai Vase
This note provides an overview of private equity in emerging markets as of late 2009. View Details
Keywords: Development Economics; Developing Countries and Economies; Private Equity; Investment; Emerging Markets
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Lerner, Josh, Ann Leamon, and Abishai Vase. "A Note on Private Equity in Developing Countries." Harvard Business School Background Note 811-102, May 2011. (Revised September 2015.)
  • June 2008 (Revised February 2013)
  • Case

Vignettes on Governance of Private Equity Firms

By: G. Felda Hardymon, Ann Leamon and Eugenia Adofo
In a series of vignettes, Nigella Hardy-Smyth of an international development agency that invests in emerging markets private equity firms must decide how to handle various situations that arise. As a member of the Limited Partner Advisory Board of each of the five... View Details
Keywords: Private Equity; Investment Funds; Corporate Governance; Governing and Advisory Boards; Managerial Roles; Emerging Markets; Partners and Partnerships
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Hardymon, G. Felda, Ann Leamon, and Eugenia Adofo. "Vignettes on Governance of Private Equity Firms." Harvard Business School Case 808-168, June 2008. (Revised February 2013.)
  • 06 May 2021
  • News

Expert Panel: Understanding Liquid Private Equity Investment Strategies

  • 24 Nov 2009
  • News

What's Next for Private Equity

Keywords: Steve Schwarzman, MBA '72; Finance
  • Program

Foundations of Private Equity and Venture Capital

responsible for small funds Entrepreneurs who are seeking private financing Families and institutions in the process of raising their first fund or considering private equity investing Angel investors who... View Details
Keywords: Finance; Finance
  • 2015
  • Working Paper

Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting

By: Erik Stafford
Private equity funds tend to select relatively small firms with low EBITDA multiples. Publicly traded equities with these characteristics have high risk-adjusted returns after controlling for common factors typically associated with value stocks. Hold-to-maturity... View Details
Keywords: Value Investing; Endowments; Investment Management; Asset Pricing; Private Equity; Investment; Management; United States
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Stafford, Erik. "Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting." Harvard Business School Working Paper, No. 16-081, January 2016.
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