The upcoming presidential campaign has reignited an intense controversy about private equity firms. The most politically charged claim holds that private equity firms destroy jobs in large numbers, mainly through the use of leveraged buyouts to acquire controlling stakes in other businesses.
Join top economist Steven J. Davis from the University of Chicago Booth School of Business as he evaluates this claim and shares his views about the broader economic effects of private equity.
Session discovery topics:
• Background: Who funds private equity firms? How do they invest the funds? How are private equity fund managers compensated?
• What happens to jobs at the businesses acquired by private equity in leveraged buyouts?
• How should we interpret these facts about jobs, and what do they say about the broader economic impact of private equity?