2023-02-14-美联储-私募股权是否超过了投资组合公司_（英）_62页_600kb

Does Private Equity Over-Lever Portfolio Companies? This paper examines whether private equity (PE) investors systematically over-lever their portfolio companies. Contrary to conventional wisdom that PE firms over-leverage, the evidence points to higher optimal leverage due to reduced asset volatility following a buyout. Key findings:

A dynamic trade-off model shows PE-backed firms achieve substantially higher optimal leverage (around 50%) compared to pre-buyout levels (33%). The increase is driven by reduced asset volatility post-acquisition—mean volatility drops from 0.309 to 0.177—lowering expected bankruptcy costs and raising debt capacity.

The counterfactual analysis reveals significant value loss (up to ~5.7%) if PE firms choose lower-than-optimal leverage, quantifying the cost of deviation. Two separate channels explain reduced volatility: operational engineering improving sales stability and sharper equity injections during distress resolving financial fragility faster.

Extensions to the model considering covenant weakening, renegotiation flexibility, or forced asset liquidation do not fully account for optimal leverage increases, suggesting the core driver is risk reduction. Reduced-form evidence from matched firms further supports these operational and financial engineering effects.