The document summarizes a workshop on private equity that discussed the diversity of private equity strategies, the mixed employment and wage outcomes of private equity investments, and expectations for the future growth of private equity alongside efforts to promote good practices and provide more data for research. Speakers at the workshop included academics and private equity professionals and focused on topics such as different private equity strategies, employment and productivity effects, and variability in outcomes between firms.

1. Restructuring Forum –
Debriefing from Private Equity
workshop
Tomas Korpi, Stockholm University

2. Speakers
• Mike Wright, Nottingham University
• Anne Rannaleet, IK Investment Partners
• Sigurt Vitols, Social Science Center Berlin
• Andrew Watt, European Trade Union Institute
Restructuring Forum, July 5-6, 2010, Brussels
Tomas Korpi

3. PE diversity
• PE apply different strategies, e.g.
– Governance - Expansion
– Focus - Financing (debt & equity)
– Operations
• … and mixes of strategies
• PE active in many different contexts, both
– industries
– countries

4. PE outcomes
• Increased profitability & productivity
– Less positive outcomes in recent years?
• Employment and wages?
– Few studies, but mixed employment effects and
lower wage growth
• Variability across PE firms and portfolio
companies?
– Research focused on average effects
– But indications of large differences between PE
firms

5. PE future
• PE expected to grow
• But more “realistic” expectations regarding
returns
• Promoting good practice
– Management practices
– Regulation
– Employee involvement
• Data for research
• Looming problems re refinancing of deals?