Book Review: Private Equity at Work: When Wall Street Manages Main Street
Eileen Appelbaum, Rosemary Batt : Private Equity at Work: When Wall Street Manages Main Street. New York: Russell Sage Foundation, 2014. 396 pp. $35.00, paper.
Michael Jensen of University of Michigan Ann Arbor recently reviewed “Private Equity at Work: When Wall Street Manages Main Street” by Eileen Appelbaum, Rosemary Batt in Administrative Science Quarterly.
Private Equity at Work is a wonderful introduction to private equity. Using a mixture of simplifying models, aggregate descriptive data, published statistical analyses, and detailed case studies, Applebaum and Batt provide a comprehensive examination of private equity and its role in the U.S. economy and society. The authors propose that “the private equity business model represents a test of the notion that pursuing shareholder value aggressively is a good thing by putting the shareholders even more in charge” (p. 4). Although they question the value of private equity for anybody but the general partners running private equity funds, their critical approach to private equity is nevertheless a remarkably fair and balanced evaluation of private equity’s advantages and disadvantages.
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