14. Buyout Funds

  1. H. Kent Baker and
  2. Greg Filbeck
  1. Christian Rauch1 and
  2. Mark Wahrenburg2

Published Online: 2 APR 2013

DOI: 10.1002/9781118656501.ch14

Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

How to Cite

Rauch, C. and Wahrenburg, M. (2013) Buyout Funds, in Alternative Investments: Instruments, Performance, Benchmarks, and Strategies (eds H. K. Baker and G. Filbeck), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118656501.ch14

Author Information

  1. 1

    Assistant Professor, Goethe University

  2. 2

    Professor of Finance, Goethe University

Publication History

  1. Published Online: 2 APR 2013
  2. Published Print: 18 MAR 2013

ISBN Information

Print ISBN: 9781118241127

Online ISBN: 9781118656501

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Keywords:

  • alternative investments;
  • financial crisis;
  • leveraged buyouts;
  • value drivers

Summary

What are buyout funds, how are they run, and how do they create value for investors? What is the current state of the buyout industry, and how did fund managers deal with the adversities they faced during the financial crisis of 2007−2008? Which challenges await the industry in the future? This chapter attempts to answer these questions. To do so, the chapter explains the economic features and major value drivers of buyout funds. It also discusses how the recent financial crisis crippled these value drivers and how the subsequent regulatory scrutiny might have the potential to change the buyout industry in the future.