Annals of Corporate Governance > Vol 5 > Issue 3

Rumors of an Eclipse Are Exaggerated. The PE Model is Here to Stay

By Mike Wright, Imperial College, UK | Ranko Jelic, University of Sussex, Business School, UK,

Suggested Citation
Mike Wright and Ranko Jelic (2020), "Rumors of an Eclipse Are Exaggerated. The PE Model is Here to Stay", Annals of Corporate Governance: Vol. 5: No. 3, pp 208-236.

Publication Date: 18 Aug 2020
© 2020 Mike Wright and Ranko Jelic
Industrial organization,  Corporate finance,  Firm ownership,  New business financing


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In this article:
1. Introduction 
2. Demise of Public Corporations? 
3. Demise or Transformation of the PE Model? 
4. Conclusion 


In line with Jensen’s predictions, private equity (PE) industry has grown remarkably and become a global phenomenon. More recently, academic literature examines a sharp drop in number of listed firms and the role of PE firms in the possible demise of public corporations. Rather controversially, some authors were also predicting the eclipse of PE. In this article we discuss recent developments and argue that rumors of the eclipse of PE are exaggerated. The PE model, and its accompanying governance role, is here to stay but it will need to adapt to changing dynamics between general and limited partners, and emergence of fintech.