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Club deals don’t hold all the aces

Solo buyouts have a greater chance of success because fewer people are involved in the portfolio

Buyouts involving more than one private equity firm have a greater risk of underperformance, according to new research by Axa Private Equity.

The buyout subsidiary of French insurance group Axa examined 430 buyouts worth an enterprise valuation of more than $1bn (€686m) each. Of these, 380 had one private equity owner while 150 were club deals with two or more buyout managers.

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