(IPRV) iShares S&P Listed Private Eqty

Business Week here reports KKR’s Q4 2011 results and goes on to compare and contrast KKR’s figures with Blackstone’s.

KKR accounts for 7.56 percent and Blackstone 7.48 pct of IPRV holdings.


Valuta



Bloomberg

KKR Profit Declines 68% as Market Erodes Investment Income

February 09, 2012, 10:22 AM EST

By Devin Banerjee


(800 words)
http://www.businessweek.com/news/2012-02-09/kkr-profit-declines-68-as-market-erodes-investment-income.html

Here is a detailed and balanced article addressing the controversy over whether private equity adds or destroys value.

Steven M. Davidoff, writing about ten days ago as The Deal Professor, in DealBook for The New York Times, reviews a range of detailed study findings and comes up with mildly positive, but tentative and incomplete, conclusions.

Valuta




January 24, 2012, 5:59 pm Private Equity | Deal Professor

Amid Attacks on Private Equity, Efforts to Study Its Value

By STEVEN M. DAVIDOFF

Controversy swirls around private equity as attacks on Mitt Romney and the entire industry mount. Amid the name-calling, little in the way of evidence has been cited. So let’s take a look at some of the best research on this issue.....


(1,300 words + graphic + comments)
http://dealbook.nytimes.com/2012/01/24/amid-attacks-on-private-equity-efforts-to-study-its-value/

Here is the abstract of a study cited in John Plender’s article.

Valuta


Private Equity and Employment

Steven J. Davis, John Haltiwanger, Ron S. Jarmin, Josh Lerner, Javier Miranda
October 1, 2011

US Census Bureau Center for Economic Studies Paper No. CES-WP-08-07R

Abstract:

Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S. private equity transactions from 1980 to 2005. We track 3,200 target firms and their 150,000 establishments before and after acquisition, comparing outcomes to controls similar in terms of industry, size, age, and prior growth. Relative to controls, employment at target establishments declines 3 percent over two years post buyout and 6 percent over five years. The job losses are concentrated among public-to-private buyouts, and transactions involving firms in the service and retail sectors. But target firms also create more new jobs at new establishments, and they acquire and divest establishments more rapidly. When we consider these additional adjustment margins, net relative job losses at target firms are less than 1 percent of initial employment. In contrast, the sum of gross job creation and destruction at target firms exceeds that of controls by 13 percent of employment over two years. In short, private equity buyouts catalyze the creative destruction process in the labor market, with only a modest net impact on employment. The creative destruction response mainly involves a more rapid reallocation of jobs across establishments within target firms.

Abstract (200 words)
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1107175

Correction: .... asterisks to ugly code ....