The term private equity usually refers to any type of
equity investment in an asset in which the equity is not freely
tradable on a public stock market. Some researchers believe that
private equity contributed to the extent of the crisis and increased
the pace of its spread over the world. We do not agree with this.
On the other hand, we argue that during the economic recession
private equity might become an important source of funds for firms
with special needs (e.g. for firms seeking buyout financing, venture
capital, expansion capital or distress debt financing). However,
over-regulation of private equity in both the European Union and
the US can slow down this specific funding channel to the
economy and deepen credit crunch during global crises.
[1] L. Černohorská, J. ČernohorskÛ, P. TeplÛ "Implications of The 2008
Financial Crisis for World Financial Markets", Scientific Papers of
The University Pardubice, vol. 14, 2009, pp.19-27.
[2] J. ČernohorskÛ, P. TeplÛ, "Alternative methods to operational risk
management", Scientific Papers of The University Pardubice, vol. 1,
2010, pp.58-65.
[3] Deutsche Bank Research.US Financial Market Reform. September
28, 2009, available at:
http://www.dbresearch.com/PROD/DBR_INTERNET_ENPROD/
PROD0000000000262857.pdf
[4] European Commission. Report of the Alternative Investment Expert
Group - Developing European Private Equity. Brussels, July 2006
[5] European Commission. Directive 2009/65/EC of the European
Parliament and of the Council of 13 July 2009 on the coordination of
laws, regulations and administrative provisions relating to
undertakings for collective investment in transferable securities
(UCITS), July 2009
[6] International Financial Services London. Hedge Funds 2010. April
2010, available at:
http://www.thecityuk.com/media/2358/Hedge_Funds_2010.pdf
[7] A. Metrick, A. Yasuda, "The Economics of Private Equity Funds",
Review of Financial Studies, Vol. 23(6), 2010, pp. 2303-2341
[8] T. O-Brien,"What Is Private Equity?", 2010, available at
http://privateequityblogger.com/2010/06/what-is-private-equity.html
[9] OpenEurope. The EU-s AIFM Directive: Likely Impact and Best Way
Forward. London, September 2009
[10] K. Pokorna and P. Teply, "Sovereign Credit Risk Measures", Proc. of
2010 International Conference on Business and Economic Sciences,
Dubai: World Academy of Science, Engineering and Technology, vol.
73, January 2011, pp. 652-656.
[11] M. Rippel and P. Teply,"Operational Risk - Scenario Analysis",
Prague Economic Papers, vol. 1, March 2011, pp. 23-39, ISSN 1210-
0455.
[12] Private Equity and Systemic Risk, 2010, available at:
www.privateequitycouncil.org/just-the-facts/private-equity-andsystemic-
risk/
[13] P.N. Rasmussen, "On EU Regulation of Hedge Funds and Private
Equity - Making the Right Choice". Letter to Michel Barnier - EU
Commissioner for Internal Market and Services, March 2010
[14] M. Sinka, P. Teply, "The (non)sense of private equity regulation?",
Scientific Papers of The University Pardubice, vol. 2, 2011, pp.155-
166.
[15] P. Teply, "The importance of MAC questions in regulation", Internal
research report, University of Economics, Prague, 2010
[16] P. Teply, R. Chalupka, and J. Cernohorsky, "Operational Risk And
Economic Capital Modeling", Proc. International Conference on
Business, Economics and Tourism Management, World Academic
Press, Feb. 2010, pp. 70-75, ISBN13: 978-1-84626-026-1.
[17] P. Teply, "Exit Strategies from The Global Crisis", Proc. of 2010
International Conference on Business, Economics and Tourism
Management, Paris: World Academy of Science, Engineering and
Technology, 2010, pp. 387-392, ISSN: 2070-3724.
[18] P. Teply, "The Key Challenges of The New Bank Regulations", Proc.
of 2010 International Conference on Business, Economics and
Tourism Management, Paris: World Academy of Science,
Engineering and Technology, 2010, pp. 383-386, ISSN: 2070-3724.
[19] P. Teply, "The Future Regulatory Challenges of Liquidity Risk
Management ", Proc. of 2010 International Conference on Business
and Economic Sciences, Dubai: World Academy of Science,
Engineering and Technology, vol. 73, January 2011, pp. 657-661.
[20] TheCityUK. Private Equity 2010. August 2010, available at:
http://www.thecityuk.com/media/179004/private%20equity%202010.
pdf
[21] TheCityUK. Private Equity 2011. August 2011, available at:
http://www.thecityuk.com/media/179004/private%20equity%202011.
pdf
[22] U.S. Securities and Exchange Commission (2003). Implications of the
Growth of Hedge Funds. Staff Report, September 2003
[23] www.evca.eu
[1] L. Černohorská, J. ČernohorskÛ, P. TeplÛ "Implications of The 2008
Financial Crisis for World Financial Markets", Scientific Papers of
The University Pardubice, vol. 14, 2009, pp.19-27.
[2] J. ČernohorskÛ, P. TeplÛ, "Alternative methods to operational risk
management", Scientific Papers of The University Pardubice, vol. 1,
2010, pp.58-65.
[3] Deutsche Bank Research.US Financial Market Reform. September
28, 2009, available at:
http://www.dbresearch.com/PROD/DBR_INTERNET_ENPROD/
PROD0000000000262857.pdf
[4] European Commission. Report of the Alternative Investment Expert
Group - Developing European Private Equity. Brussels, July 2006
[5] European Commission. Directive 2009/65/EC of the European
Parliament and of the Council of 13 July 2009 on the coordination of
laws, regulations and administrative provisions relating to
undertakings for collective investment in transferable securities
(UCITS), July 2009
[6] International Financial Services London. Hedge Funds 2010. April
2010, available at:
http://www.thecityuk.com/media/2358/Hedge_Funds_2010.pdf
[7] A. Metrick, A. Yasuda, "The Economics of Private Equity Funds",
Review of Financial Studies, Vol. 23(6), 2010, pp. 2303-2341
[8] T. O-Brien,"What Is Private Equity?", 2010, available at
http://privateequityblogger.com/2010/06/what-is-private-equity.html
[9] OpenEurope. The EU-s AIFM Directive: Likely Impact and Best Way
Forward. London, September 2009
[10] K. Pokorna and P. Teply, "Sovereign Credit Risk Measures", Proc. of
2010 International Conference on Business and Economic Sciences,
Dubai: World Academy of Science, Engineering and Technology, vol.
73, January 2011, pp. 652-656.
[11] M. Rippel and P. Teply,"Operational Risk - Scenario Analysis",
Prague Economic Papers, vol. 1, March 2011, pp. 23-39, ISSN 1210-
0455.
[12] Private Equity and Systemic Risk, 2010, available at:
www.privateequitycouncil.org/just-the-facts/private-equity-andsystemic-
risk/
[13] P.N. Rasmussen, "On EU Regulation of Hedge Funds and Private
Equity - Making the Right Choice". Letter to Michel Barnier - EU
Commissioner for Internal Market and Services, March 2010
[14] M. Sinka, P. Teply, "The (non)sense of private equity regulation?",
Scientific Papers of The University Pardubice, vol. 2, 2011, pp.155-
166.
[15] P. Teply, "The importance of MAC questions in regulation", Internal
research report, University of Economics, Prague, 2010
[16] P. Teply, R. Chalupka, and J. Cernohorsky, "Operational Risk And
Economic Capital Modeling", Proc. International Conference on
Business, Economics and Tourism Management, World Academic
Press, Feb. 2010, pp. 70-75, ISBN13: 978-1-84626-026-1.
[17] P. Teply, "Exit Strategies from The Global Crisis", Proc. of 2010
International Conference on Business, Economics and Tourism
Management, Paris: World Academy of Science, Engineering and
Technology, 2010, pp. 387-392, ISSN: 2070-3724.
[18] P. Teply, "The Key Challenges of The New Bank Regulations", Proc.
of 2010 International Conference on Business, Economics and
Tourism Management, Paris: World Academy of Science,
Engineering and Technology, 2010, pp. 383-386, ISSN: 2070-3724.
[19] P. Teply, "The Future Regulatory Challenges of Liquidity Risk
Management ", Proc. of 2010 International Conference on Business
and Economic Sciences, Dubai: World Academy of Science,
Engineering and Technology, vol. 73, January 2011, pp. 657-661.
[20] TheCityUK. Private Equity 2010. August 2010, available at:
http://www.thecityuk.com/media/179004/private%20equity%202010.
pdf
[21] TheCityUK. Private Equity 2011. August 2011, available at:
http://www.thecityuk.com/media/179004/private%20equity%202011.
pdf
[22] U.S. Securities and Exchange Commission (2003). Implications of the
Growth of Hedge Funds. Staff Report, September 2003
[23] www.evca.eu
@article{"International Journal of Business, Human and Social Sciences:52698", author = "Libena Cernohorska and Veronika Linhartova and Michal Sinka and Petr Teply", title = "The Role of Private Equity during Global Crises", abstract = "The term private equity usually refers to any type of
equity investment in an asset in which the equity is not freely
tradable on a public stock market. Some researchers believe that
private equity contributed to the extent of the crisis and increased
the pace of its spread over the world. We do not agree with this.
On the other hand, we argue that during the economic recession
private equity might become an important source of funds for firms
with special needs (e.g. for firms seeking buyout financing, venture
capital, expansion capital or distress debt financing). However,
over-regulation of private equity in both the European Union and
the US can slow down this specific funding channel to the
economy and deepen credit crunch during global crises.", keywords = "scredit lunch, distress debt, global crisis, private
equity, regulation", volume = "6", number = "5", pages = "787-5", }
