Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Law
Restricted Investment In Private Equity: The Volcker Rule's Incursion Into Banking?, Manasa Reddy Gummi
Restricted Investment In Private Equity: The Volcker Rule's Incursion Into Banking?, Manasa Reddy Gummi
Cornell Law School LL.M. Student Research Papers
Investment in private equity originally came from individual investors and corporations. However, over the years institutional investors have become prominent in the investor pool with the hope of achieving risk adjusted returns. Banks have become significant sources of funds in the private equity market. Bank affiliate groups account for a significant share of the private equity activity as well as the banks’ own capital. A distinct feature of a leveraged buyout by a private equity firm as opposed to strategic buyouts and other transactions is the significant reliance on debt financing. Typically, shell companies with substantially no assets would be …