RT Journal Article SR Electronic T1 Current and Private Investors' Return and Risk Sharing with Private Equity Offering Announcements JF The Journal of Private Equity FD Institutional Investor Journals SP 30 OP 40 DO 10.3905/jpe.2008.707200 VO 11 IS 3 A1 Leroy D. Brooks A1 Eurico J. Ferreira YR 2008 UL https://pm-research.com/content/11/3/30.abstract AB Private equity investors receive two-thirds of the announcement wealth gain at private equity offering announcements before netting out their costs and required risk premiums during 1983–1996. The existing investors, facing no marginal costs and a reduction in risk from a less financially leveraged company, have a free ride and gain one-third of the wealth effect. Announcement returns are highest to private investors when both the private and public equity issuance market climates are normal while the poorest occur in cold EPP markets. The average announcement period return to private investors is still reasonably large under all issuance climates.TOPICS: Private equity, equity portfolio management, statistical methods, performance measurement