The Value of Specialization in Private Equity - HEC Paris - École des hautes études commerciales de Paris Access content directly
Preprints, Working Papers, ... Year : 2021

The Value of Specialization in Private Equity


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 specialists 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 do their generalist peers and other, non-PE investors backing ex ante equivalent assets. By contrast, PE generalists’ strongest comparative advantage may be better access to attractively priced acquisition financing. Our results provide novel evidence on the heterogeneity of PE investment strategies and associated performance outcomes.
No file

Dates and versions

hal-03501437 , version 1 (23-12-2021)



Christophe Spaenjers, Eva Maria Steiner. The Value of Specialization in Private Equity: Evidence from the Hotel Industry. 2021. ⟨hal-03501437⟩


23 View
0 Download



Gmail Facebook X LinkedIn More