British corporate law scholar Marc Moore has published a very interesting article on the trans-Atlantic origin of private equity, which he has summarized for the CLS Blue Sky Blog. Money quote:
Anglo-American private equity has a much longer, richer, and more complex history (or, if you like, pre-history) than is typically attributed to it. As such, modern manifestations of private equity from the 1970s onwards are not nearly as unusual in the broader context of historical investment practices as is commonly believed. Accordingly, there is much to be gained from viewing the modern private equity sector against the much longer, richer, and more contextually path-dependent backdrop that I set out in my paper. Moreover, the added value to students and scholars of private equity from taking such a long (and broad) view of their subject matter is especially pertinent in the contemporary context, as the private equity sector’s rapidly increasing bureaucratic scale and functional complexity present evolving new challenges for practitioners, policymakers, and external analysts alike.
Recommended reading.