Private equity's quest for returns leads to lower performance and cultural challenges.
The article "Three Essays in Private Equity" explores changes in the private equity market. One study shows that private equity funds perform worse when they become publicly traded. Another study finds that private equity investments in emerging markets are more successful when firms are closer geographically and culturally to the companies they invest in. Lastly, the importance of skilled managers in private equity firms is highlighted, as manager mobility can harm performance.