Academic research has cast doubt on the link between private equity ownership and a higher failure rate for companies, in a finding that could be useful in the buy-out industry’s battle against proposed regulation, the FT said. A study by the Credit Management Research Centre at Leeds University Business School and the Centre for Management Buy-out Research at Nottingham University of 8m private companies in the UK found that private equity deals done after 2003 were no more likely to fail than other companies, after adjusting for leverage and other factors.

This entry was posted by Stacy-Marie Ishmael on Monday, July 6th, 2009 at 4:46 and is filed under Capital markets, Private equity. Tagged with Regulation, UK. Edit this entry.