Ed Miliband thinks that all private equity investors are bad, "stripping assets for a quick buck ... [and that] they aren't the values of British business" . So is he right or wrong? Similar to most other politicians, Ed Miliband is right and wrong. In what follows, I shall focus on the effects of private equity acquisitions on employees as there is an existing body of academic research studying that particular link. This research suggests that, on the whole, private equity acquisitions are good for employees, resulting in increases in employee numbers as well as improvements in employment practices and employee voice. However, most of this research does not distinguish between the different types of private equity investors. Nevertheless, I first want to define what I mean by private equity . Private equity involves the acquisition of a public firm or at least the facilitation of that acquisition. The firm is taken private in a so called public-to-private (PTP
I am a full professor at IE Business School in Madrid. On this blog, I discuss my research on corporate governance as well as topical issues on corporate governance and related issues.