The evolution and strategic positioning of private equity firms

Robert E. Hoskisson, Wei Shi, Xiwei Yi, Jing Jin

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

General partners in private equity (PE) firms manage funds contributed by PE investors to acquire portfolio firms, most often using additional debt capital borrowed from banks or debt markets. This chapter examines the evolution of PE firms and specify the nature of PE firms’ strategic positioning. It discusses theoretical implications and future research opportunities using proposed conceptual framework as well as managerial and public policy implications in regard to emerging trends in the PE industry. The chapter argues that financial structure emphasis and portfolio firm scope dimensions capture configuration types among PE firms and that the combination of resource dependence theory and resource-based theory provides theoretical rationales for choosing these two dimensions. It identifies PE firms into four types: short-term efficiency niche players, niche players with long-term equity positions, diversified players with focused groups of portfolio firms, and short-term diversified efficiency-oriented players.

Original languageEnglish (US)
Title of host publicationThe Routledge Companion to Management Buyouts
PublisherTaylor and Francis
Pages227-247
Number of pages21
ISBN (Electronic)9781351862530
ISBN (Print)9781138713840
DOIs
StatePublished - Jan 1 2018

Fingerprint

Private equity
Strategic positioning
Niche
Debt
Financial structure
Equity
Policy implications
Resource dependence theory
Public policy
Resource-based theory
Rationale
Investors
Conceptual framework
Industry

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Cite this

Hoskisson, R. E., Shi, W., Yi, X., & Jin, J. (2018). The evolution and strategic positioning of private equity firms. In The Routledge Companion to Management Buyouts (pp. 227-247). Taylor and Francis. https://doi.org/10.4324/9781315230597

The evolution and strategic positioning of private equity firms. / Hoskisson, Robert E.; Shi, Wei; Yi, Xiwei; Jin, Jing.

The Routledge Companion to Management Buyouts. Taylor and Francis, 2018. p. 227-247.

Research output: Chapter in Book/Report/Conference proceedingChapter

Hoskisson, RE, Shi, W, Yi, X & Jin, J 2018, The evolution and strategic positioning of private equity firms. in The Routledge Companion to Management Buyouts. Taylor and Francis, pp. 227-247. https://doi.org/10.4324/9781315230597
Hoskisson RE, Shi W, Yi X, Jin J. The evolution and strategic positioning of private equity firms. In The Routledge Companion to Management Buyouts. Taylor and Francis. 2018. p. 227-247 https://doi.org/10.4324/9781315230597
Hoskisson, Robert E. ; Shi, Wei ; Yi, Xiwei ; Jin, Jing. / The evolution and strategic positioning of private equity firms. The Routledge Companion to Management Buyouts. Taylor and Francis, 2018. pp. 227-247
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