Direct investments are the preferred vehicle for large institutional investors to have control over their portfolio investments. This chapter studies the deal structure of direct investments by sovereign wealth funds (SWFs) in private equity transactions. Its analyses of direct investments are based on data from Global Corporate Venturing. It finds that SWFs shift from investing in private equity funds to originating and co-investing together with private equity funds in deals. The choice for co-investment affects deal size, risk-bearing, fees and returns. Overall, results of research conducted for this chapter show the strong interest of SWFs in direct investments in developed markets.
Plaintiffs’ lawyer fees and monetary awards have a distorting effect on shareholder value effects in US derivative cases. In this chapter we analyze the benefits of corporate litigation without these externalities using a data set for the Netherlands between 2002 and 2013. We find significant abnormal returns within a short timespan surrounding the filing and resolution of M&A-related lawsuits. Over longer horizons, resolutions have little impact on shareholder value. However, our findings suggest that longer waiting times for court resolutions are costly. The evidence from the Netherlands supports the view that in settings without strong distortions derivative style litigation may be important.
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