The History, Impact, and Future of Private Equity
Ownership, Governance, and Firm Performance
About This Event

From humble beginnings twenty-five years ago on Wall Street, the leveraged buyout boom has developed into a veritable industry; today, 30 percent of all corporate merger and acquisition activity in the United States is driven by buyout firms, and the sector commands over $2 trillion in leveraged assets. Along with hedge funds and real assets, private equity is now seen as an important alternative investment class, and fundamental changes in corporate control, governance, modern capital markets, institutional investing, and the funding of entrepreneurial pursuits have all been driven by the growth and evolution of the private equity sector.

At this event, leading financial economists as well as the sector’s top practitioners will offer a detailed evaluation of the private equity sector, noting important historical trends and episodes, and offering perspective on future dynamics. Key questions to be considered include: Why did the private equity sector develop as it did in the 1980s and how has it evolved? What are the major criticisms of the buyout sector, and how valid are they? What changes in governance and capital markets have resulted, and when does the private equity model make sense? How has private equity developed in Europe and Asia in comparison to the United States? To what extent should regulatory bodies become involved in private equity? What can we expect in the future in terms of the private equity sector?

For the transcript and audio recording of Tuesday night's keynote address, please go here.

For the transcript, audio, and video from Wednesday's session, please go here.

Agenda
Tuesday,
November 27
1:45 p.m.
Registration
2:00
Welcome:
Christopher DeMuth, AEI
Opening Remarks:
R. Glenn Hubbard, AEI and Columbia Business School
2:15
Special Remarks:
Private Equity, Venture Capital, and Modern Capital Markets
Presenter:
Josh Lerner, Harvard Business School
2:50
Panel I:
Private Equity’s History and Impact on Corporate Governance
Presenter:
Steven N. Kaplan, University of Chicago
Discussants:
Kenneth M. Lehn, University of Pittsburgh
John L. Chapman, AEI
Moderator:
Alex Brill, AEI
4:15 p.m.
Panel II:
Private Equity’s Impact: Productivity and Labor Market Effects
Presenter:
Steven J. Davis, AEI and University of Chicago
Discussants:
Douglas J. Cumming, York University
Kent Smetters, AEI and the Wharton School at the University of Pennsylvania
Moderator:
Kevin Hassett, AEI
5:45
Reception
6:30
Dinner
7:00
Keynote Speaker:
Michael C. Jensen, Harvard Business School
8:00
Adjournment
Wednesday,
November 28
7:45 a.m.
Registration
8:10
Opening Remarks:
R. Glenn Hubbard, AEI and Columbia Business School
8:20
Panel III:
Private Equity’s Impact: Corporate Control, Capital Markets, and Entrepreneurship
Presenter:
Karen H. Wruck, Ohio State University
Discussants:
Annette B. Poulsen, University of Georgia
Peter G. Klein, University of Missouri—Columbia
Moderator:
Alan Viard, AEI
9:30
Panel IV:
European and Global Developments in Private Equity
Presenter:
Mike Wright, Nottingham University Business School
Discussants:
David Ravenscraft, University of North Carolina at Chapel Hill
Adam Lerrick, AEI and Carnegie Mellon University
Moderator:
Nick Schulz, AEI
11:10
Panel V:
Practitioner Panel: The View from the Trenches
Presenters:
Brian P. Simmons, Code Hennessy & Simmons
Tully M. Friedman, Friedman Fleischer & Lowe
Thomas Puetter, Allianz Capital Partners
Rick Rickertsen, Pine Creek Partners
Moderator:
John L. Chapman, AEI
12:00 p.m.
Luncheon
Introduction:
James Glassman, AEI
Keynote Speaker:
David M. Rubenstein, Carlyle Group
1:15
Adjournment
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AEI Participants

 

Alex
Brill

 

Steven J.
Davis
  • Steven J. Davis studies unemployment, job displacement, business dynamics, the effect of taxes on work activity, and other topics in economics. He is deputy dean for the faculty and professor of international business and economics at the University of Chicago Booth School of Business, a research associate at the National Bureau of Economic Research, and an economic adviser to the U.S. Congressional Budget Office.  He previously taught at Brown University and MIT.  As a visiting scholar at AEI, Mr. Davis studies how policy-related sources of uncertainty affect national economic performance.

 

R. Glenn
Hubbard

 

Adam
Lerrick

 

Nick
Schulz

 

Kent
Smetters

 

Alan D.
Viard
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