The Pulse of Private Equity – 6/4/2018

The upside of SBOs

Secondary buyouts have been a contentious part of the PE industry for a long time. Limited partners are the most vocal about “pass-the-parcel” deals; in rare cases they are both buyer and seller of the same company (if they’re invested in both funds), but even when that’s not the case, studies suggest that less value is created after the company’s first LBO.