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Market-Based Solutions to Vital Economic Issues

Private Capital

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PERC returns to Oxford University’s Saïd Business School on May 26-27, 2022, for the Private Equity Research Consortium Spring Symposium. This group of scholars and industry professionals conducts and promotes research on private equity. This research symposium offers the opportunity for this group to engage with new academic research.

Since 2008, the Alternative Investments Conference has served as a forum for private equity, hedge fund, venture capital and other alternative asset professionals to network, share ideas and stay abreast of industry trends. The conference provides insights into current topics in alternative investments as well as the opportunity to meet and learn from some of the most influential industry leaders.

Please join us for an exclusive conversation with First Citizens Bank Vice Chairwoman Hope Bryant. This discussion is part of the Dean’s Speaker Series, hosted by Kenan-Flagler Business School Dean Doug Shackelford.

Please join us for an exclusive conversation with Worthington Industries President and Chief Executive Officer, Andrew Rose on Wednesday, February 16. This discussion is part of the Dean’s Speaker Series, hosted by Kenan-Flagler Business School Dean Doug Shackelford.

The Institute for Private Capital’s newly-released interactive model that aims to help private equity leaders assess diversity, equity and inclusion (DEI) goals was featured in a report by Ernst & Young.

A recent report highlighting diversity, equity and inclusion in private equity and the launch of an accompanying interactive tool – developed by EY and IPC in collaboration with the Kenan Institute – were recently featured in Yahoo Finance. IPC Founder and Research Director Greg Brown said the model was made to help PE firms understand the link between DEI practices and recruitment and retention.

Private equity continues to grow as a major investment vehicle in the U.S. and globally. The 12th annual PERC Conference will build on its legacy as a leading research symposium in the ever-expanding field of private equity.

Our analysis reveals that banks could develop capital-constrained by holding nonperforming household debts supported by central bank liquidity. We demonstrate the sequential responses to nonperforming assets on retained earnings, capital reserve, and new equity issuance. With capital reserves, banks can keep adding risky assets when retained earnings lag. Running low, banks have to downsize and issue new equity. We document market predictions on firms’ exposure before a systemic event: large banks collectively reduced their debt supply in 2009. Practicing selectively and collectively downsizing, banks prioritize clients on historical revenue contribution. Borrowers with exclusive relationships report lower risk exposure.

With more business leaders than ever before embracing stakeholder capitalism – or the belief that companies should work to benefit all stakeholders, not just shareholders – myriad questions have arisen about the concept’s viability and potential for impact. The Kenan Institute has been working to respond, and today we are excited to launch a new series exploring the most pressing issues surrounding stakeholder capitalism. Kicking off the series is this week’s Kenan Insight, which takes a deeper dive into the buzzed-about world of ESG investing. We hope you’ll check it out, and look forward to engaging with you on this topic and others throughout the series!

Employee spinouts, startups founded by prior employees of existing industry firms, play a critical role in firm creation and knowledge transfer within and across industries. Their superior performance often arises from resources and knowledge accrued during employment in parent firms. An understudied question relates to whether prior employment in parent firms impacts an employee spinout’s alliance formation, given that alliances are critical to the survival and commercial success of startups. This article examines when employee spinout’s alliance partners overlap with their parent’s partners. Drawing on alliance formation patterns of U.S. medical device spinouts founded between 1990 to 2013, we find that spinouts extending their parents’ technologies tend to have more alliance partner overlap with their parents, whereas product market overlap leads to fewer overlapping partners.

This paper investigates the value relevance of acquired intangible assets using a comprehensive hand-collected dataset for 1,647 publicly listed US-firms from 2002 to 2018. This dataset allows us to disentangle acquired intangible assets into different classes (e.g., tech-, customer-, contract-, and marketing-intangible assets) and their respective economic lifetimes (i.e., definite vs indefinite useful lives) to test their relevance for equity investors. We predict and find positive associations for nearly all intangible assets, however with different economic significance. In particular, tech- and customer-related intangible assets are priced by equity investors. Furthermore, we find that definite intangible assets are more relevant than indefinite intangibles. These results are helpful for firms and their equity investors to understand the economic impact of intangible assets. Finally, the findings are particularly important for regulators given the recent proposition of the Financial Accounting Standards Board to subsume customer-related intangible assets and non-compete agreements into goodwill. While our results suggest that customer-related intangible assets are priced significantly by equity investors, this is not the case for non-compete agreements.

Real Estate investments continue to rise in importance in the alternative asset space. The Institute for Private Capital will host this event which will present innovative and leading research on real estate investments.

Our Private Capital Experts

Greg Brown

Executive Director, Kenan Institute of Private Enterprise; Sarah Graham Kenan Distinguished Professor of Finance, UNC Kenan-Flagler Business School

Christian Lundblad

Director of Research, Levin Distinguished Professor of Finance, and Associate Dean of the Ph.D. Program, UNC Kenan-Flagler Business School

Centers & Initiatives

Institute for Private Capital

Creating transformative knowledge of private capital.