Fare Thee Well? An Analysis of Buyout Funds' Exit Strategies

Furth, Sven and Rauch, Christian (2015) Fare Thee Well? An Analysis of Buyout Funds' Exit Strategies. Financial Management, 44 (4). pp. 811-849.


This paper analyzes exit strategies of buyout funds in their portfolio companies following Initial Public Offerings. We use a data set of 222 buyout-backed IPOs in the United States between 1999 and 2008 including hand-collected data about each exit process to draw up a detailed road map of buyout investors’ divestment processes. Using this data, we document timing and aggressiveness of the exit strategies, and analyze to which degree a multitude of possible determinants influence the choice for a given exit strategy. Our results show that buyout funds stay invested in their portfolio companies for a substantial period of time after the IPO, and that the choice for a given exit strategy depends not only on characteristics of each respective portfolio company, but also on the financial success of the deal from the perspective of the buyout investor.

Item Type: Article
Keywords: initial public offerings, finance
Subject(s): Finance
Date Deposited: 01 Oct 2015 13:55
Last Modified: 27 Feb 2017 10:03
Funders: not applicable
URI: http://eureka.sbs.ox.ac.uk/id/eprint/5530

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