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Finding the Virtue in Private Equity Firms
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Finding the Virtue in Private Equity Firms

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Private equity firms have long been seen as villainous actors intent on the singular goal of profit. But new research from Wharton management professor Paul Nary provides better insight into the benefits of private equity buyouts. Nary has co-authored a paper with Wharton management professor Harbir Singh and Aseem Kaul, associate professor at the Carlson School of Management at the University of Minnesota, titled, “ Who Does Private Equity Buy? Evidence on the Role of Private Equity from Buyouts of Divested Businesses .” The paper was published in Strategic Management Journal . Nary recently joined Knowledge at Wharton to discuss the paper and its findings. An edited transcript of the conversation follows. Knowledge at Wharton: Private equity firms are often viewed as destroyers of corporate value, but your paper argues that the opposite may be true. Paul Nary: Yes, correct.…

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