Business cycle and resilience in private equity

With the increasing risk of a recessionary market environment, many investors are asking themselves what impact economic cycles have on the private equity industry.

Using proprietary data, Prof. Dr. Reiner Braun and Alexander Jürgens, equation, investigate the effects of economic cycles on the value creation of private equity-owned companies compared to listed benchmark portfolios. In doing so, they also shed light on the role of private equity investors as a source of financing in times of crisis.