Private equity experienced dramatic fluctuations in investment activity in line with the turbulences of financial markets in recent years. Claudia Sommer develops a theoretical framework of factors driving private equity investment activity and the resulting performance implications. Using a data set of more than 40,000 European transactions, she applies a variety of econometrical approaches and shows how neoclassical aspects, information asymmetries, agency conflicts, and market timing contribute to the dynamics in the private equity market. In a performance analysis of more than 1,300 European funds she reveals the resulting performance implications.

Autorentext
Dr. Claudia Sommer completed her doctoral thesis under the supervision of Prof. Andreas Grüner and Prof. Klaus Spremann at the University of St. Gallen. She is Head of Corporate Development of a leading German retail and E-commerce company and has a track record in top management consulting.

Zusammenfassung
Private Equity experienced dramatic flutuations in investment activity in line with the turbulences of financial markets in recent years. Claudia Sommer develops a theoretical framework of factors driving private equity investment activity and the resulting performance implications. Using a data set of more than 40,000 European transations between 1990 and 2009 she applies a variety of econometrial approaches and shows how neoclassical aspects, information asymmetries, agency conflicts, and market timing contribute to the dynamics in the private equity market. In a performance analysis of more than 1,300 European private equity funds, she reveals how fund performance is linked to investment activity.

Inhalt
Review of economic and business literature on private equity in Europe.- Development of a theoretical framework on private equity investment cycles.- Analysis of factors driving private equity investment activity on aggregate and industry level.- Analysis of the performance implications of investment cycles.- Practical implications, summary and conclusion.