TY  - JOUR
AU  - Metrick, Andrew
AU  - Yasuda, Ayako
TI  - Venture Capital and Other Private Equity: A Survey
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 16652
PY  - 2010
Y2  - December 2010
DO  - 10.3386/w16652
UR  - http://www.nber.org/papers/w16652
L1  - http://www.nber.org/papers/w16652.pdf
N1  - Author contact info:
Andrew Metrick
Yale School of Management
135 Prospect Street
P.O. Box 208200
New Haven, CT 06520
Tel: 203/432-3069
E-Mail: metrick@yale.edu

Ayako Yasuda
Graduate School of Management
UC Davis
3206 Gallagher Hall
One Shields Ave.
Davis, CA 95616-8609
Tel: 530-752-0775 
Fax: 530-752-2924
E-Mail: asyasuda@ucdavis.edu
AB  - We review the theory and evidence on venture capital (VC) and other private equity: why professional private equity exists, what private equity managers do with their portfolio companies, what returns they earn, who earns more and why, what determines the design of contracts signed between (i) private equity managers and their portfolio companies and (ii) private equity managers and their investors (limited partners), and how/whether these contractual designs affect outcomes. Findings highlight the importance of private ownership, and information asymmetry and illiquidity associated with it, as a key explanatory factor of what makes private equity different from other asset classes.
ER  -