Specialization and performance in private equity: Evidence from the hotel industry

We show that PE sector specialists outperform generalists at every stage of the investment life cycle. Using granular data for thousands of U.S. hotels over the last two decades, we document that specialist PEs exert a greater positive influence on more margins of hotel operations, earn higher net cash flows over the holding period, and achieve larger capital gains upon exit than their generalist peers backing ex ante equivalent assets. Our results provide novel evidence on the heterogeneity of PE investment strategies and associated performance outcomes. JEL Classification: G11, G24, G32, R33.

• Publication year

  2024

• Venue

  Journal of Financial Economics

• Publication date

  2024-12-01

• Fields of study

  Not labeled

• Identifiers
  DOI 10.1016/j.jfineco.2024.103930
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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