Serdar Aldatmaz, Greg W. Brown, and Asli Demirgüç-Kunt
Using a proprietary data set on international private equity activity, we study the determinants of buyout investments across 61 countries and 19 industries over the period of 1990–2017. We find that countries with cyclically strong economies, more active stock and credit markets, and better rule of law experience more buyout activity. Countries also receive more buyout capital following investor protection and contract enforcement reforms. The set of determinants we identify appear somewhat unique to buyout investments, because other forms of investment such as FDI, gross capital formation, investments in R&D, and M&A activity do not respond similarly to these factors.