While there are clearly risks in combing bank and PE investing, are the bank-affiliated PE groups getting an unfair advantage?
A recent study has called into question private equity investments by bank-affiliated PE firms. The study by INSEAD Professor Lily Fang with co-authors Victoria Ivashina and Josh Lerner of Harvard, called ‘An Unfair Advantage’? Combining Banking with Private Equity Investing, found that between 1983 and 2009, bank-affiliated groups accounted for more than a quarter of all PE investments.
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