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studies
This page considers salient works on particular private
equity funds, the economics and regulation of LBOs, and
fund managers as a target for cultural criticism
It covers -
introductions
Pointers to literature on finance and investment are provided
in the e-capital guide
elsewhere on this site. Introductions of particular value
are Private Equity: Transforming Public Stock Into
Private Equity to Create Value (New York: Wiley 2003)
by Harold Bierman Jr, Exposed to the J-Curve: Understanding
and Managing Private Equity Fund Investments (London:
Euromoney 2005) by Ulrich Grabenwarter & Tom Weidig,
Private Equity: Examining the New Conglomerates of
European Business (New York: Wiley 1999) by Peter
Temple, Venture Capital and Private Equity: A Casebook
(New York: Wiley 2002) by Josh Lerner, Private Capital
Markets: Valuation, Capitalization, & Transfer of
Private Business Interests (New York: Wiley 2004)
by Robert Slee and European Private Equity: A Practical
Guide for Vendors, Managers and Entrepreneurs (London:
Euromoney 2002) by Garry Sharp.
Concerns regarding regulation and governance are highlighted
in the 2006 paper Regulatory Harmonization and the
Development of Private Equity Markets (PDF)
by Douglas Cumming & Sofia Johan and The Costs
of Being Public After Sarbanes-Oxley: The Irony of "Going
Private" by William Carney.
Broader works include Jean Tirole's outstanding The
Theory of Corporate Finance (Princeton: Princeton
Uni Press 2006) and Irrational Exuberance (Princeton:
Princeton Uni Press 2000), Robert Shiller's Irrational
Exuberance (Princeton: Princeton Uni Press 2000)
and The New Financial Order: Risk in the 21st Century
(Princeton: Princeton Uni Press 2003), Joseph Stiglitz'
The Roaring Nineties (New York: Norton 2003)
and The Origins of Value: The Financial Innovations
that Created Modern Capital Markets (Oxford: Oxford
Uni Press 2005) edited by William Goetzmann and K Geert
Rouwenhorst.
For contemporary and past markets see in particular A
History of Corporate Finance (Cambridge: Cambridge
Uni Press 1997) by Jonathan Baskin & Paul Miranti,
The State, the Financial System and Economic Modernisation
(Cambridge: Cambridge Uni Press 1999) edited by Richard
Sylla, Richard Tilly & Gabriel Tortella, John Gordon's
The Great Game: The Emergence of Wall Street As A World
Power (New York: Scribners 1999), David Kynaston's
multi-volume The City of London (London: Chatto
& Windus 1994-2001), The Rise and Fall of Europe's
New Stock Markets (London: Elsevier 2005) edited
by Giancarlo Giudici & Peter Roosenboom and Peter
Hartcher's Bubble Man: Alan Greenspan and The Missing
Seven Trillion (Melbourne: Black Inc 2005).
Pointers to works on valuation, opportunism, regulatory
indifference and sheer zaniness are provided in the profile
on the dot-com bubble and
its precursors. They include Aswath Damodaran's
The Dark Side of Valuation (New York: Wiley 2001)
and Going Public: The Theory & Evidence On How
Companies Raise Equity Finance (Oxford: Clarendon
Press 1996) by Tim Jenkinson & Alexander Ljungqvist
fund profiles
The academic or popular literature on individual fund
managers is thin, marked by problematical praise or demonisation.
Most attention has centred on Kohlberg Kravis Roberts
(KKR) and a handful of competitors such as The Carlyle
Group, Hicks Muse Tate & Furst (HMTF) and Macquarie.
For the 1980s 'junk bond era' see in particular Connie
Bruck's The Predators' Ball: The Inside Story of Drexel
Burnham & the Rise of the Junk Bond Raiders (New
York: Penguin 1989), Big Deal (New York: Warner
1998) by financier Bruce Wasserstein, Michael Lewis' Liar's
Poker (London: Hodder & Stoughton 1989) and The
Money Culture (London: Hodder & Stoughton 1991),
David Mason's From Buildings and Loans to Bail-Outs:
A History of the American Savings and Loan Industry, 1831-1995
(New York: Cambridge Uni Press 2004) and Barbarians
at the Gate: The Fall of RJR Nabisco (New York: HarperBusiness
1991) by Bryan Burrough & John Helyar.
The New Financial Capitalists: Kohlberg Kravis Roberts
and the Creation of Corporate Value (Cambridge: Cambridge
Uni Press 1998) by George Baker & George Smith is
an laudatory study that complements their 'Leveraged management
buyouts at KKR:
Historical perspectives on patient equity, debt discipline,
and LBO governance' in Private Equity & Venture
Capital (London: Euromoney 2000) edited by Ronald
Lake & Rick Lake. It might be read in conjunction
with George Anders' Merchants of Debt: KKR and the
Mortgaging of American Business (New York: Basic
Books 1992), superior to Sarah Bartlett's The Money
Machine: How KKR Manufactured Power & Profits
(New York: Warner 1991). Steven Kaplan's 'The evolution
of US corporate governance: we are all Henry Kravis
now' (in Lake & Lake, 2000) provokes the response
that most of us don't have Kravis' money or access to
the US Treasury Department.
Carlyle is the subject of Dan Briody's The Iron Triangle:
Inside the Secret World of the Carlyle Group (New
York: Wiley 2003), a journalistic and at times conspiracist
account in the long tradition of exposes of Rothschild
Freres, JP Morgan and other folk devils.
For Ripplewood's painful rescue of LTCB see Saving
the Sun: A Wall Street Gamble to Rescue Japan from Its
Trillion-Dollar Meltdown (New York: HarperCollins
2003) by Gillian Tett.
John Taylor's Circus of Ambition: The Culture of Wealth
and Power in the Eighties (New York: 1999); John
Brooks' The Go-Go Years: The Drama and Crashing Finale
of Wall Street's Bullish 60s (New York: Wiley 1999)
suugests that the 1980s boom was not that much different
to those of preceding generations
precursors
The activity of merchant bankers and their allies prior
to the 1930s offers a point of reference for the contemporary
private equity industry and its reception.
For Morgan and US peers see in particular Vincent Carosso's
Investment Banking in America: A History (Cambridge:
Harvard Uni Press 1970) and The Morgans, Private International
Bankers, 1854-1913 (Cambridge: Harvard Uni Press
1989), Saul Engelbourg & Leonard Bushkoff's The
Man Who Found the Money: John Stewart Kennedy and the
Financing of the Western Railroads (East Lansing:
Michigan State Uni Press 1996), Dolores Greenberg's Financiers
& Railroads, 1869-1889: A Study of Morton, Bliss,
& Company (Newark: Uni of Delaware Press 1980),
Kathleen Burk's Morgan Grenfell 1838-1988: The Biography
of a Merchant Bank (Oxford: Oxford University Press
1989), Ron Chernow's The House of Morgan: An American
Banking Dynasty and the Rise of Modern Finance (New
York: Atlantic 1990) and concise The Death of the
Banker. The Decline and Fall of the Great Financial Dynasties
and the Triumph of the Small Investor (New York:
Random 1997) and Jean Strouse's intimate Morgan: American
Financier (New York: Random 1999).
David Cannadine's Mellon: An American Life (New
York: Knopf 2006) offers another perspective, as does
Cedric Cowing's Populists, Plungers & Progressives:
A Social History of Stock & Commodity Speculation,
1890-1936 (Princeton: Princeton Uni Press 1965) and
John Brooks' Once in Golconda (London: Gollancz
1969).
Lazards is profiled in the gossipy The Last Tycoons
(New York: Doubleday 2007) by William D. Cohan
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