A Theory of Liquidity in Private Equity

The authors thank Bruno Biais (the editor), the associate editor, three anonymous referees, Naveen Khanna, Giorgia Piacentino, Armin Schwienbacher, Bogdan Stacescu, Paolo Volpin, Guillaume Vuillemey, Michael Weisbach (discussants), Ulf Axelson, Bo Becker, Marcus Opp, Morten Sørensen, and seminar participants at Carnegie Mellon, Copenhagen Business School, Einaudi Institute for Economics and Finance in Rome, Frankfurt School of Finance and Management, Goethe University in Frankfurt, INSEAD Paris, University of Lugano, Queen Mary London, Swedish House of Finance Stockholm, Technische Universität München, Warwick, Yeshiva University in New York, the Barcelona Graduate School of Economics Summer Forum, the 2021 American Finance Association Annual Meeting, the 6th Cambridge Corporate Finance Theory Symposium, the 15th CSEF-IGIER Symposium on Economics and Institutions in Milan, the 2020 European Finance Association Meeting in Lisbon, the 2019 Financial Intermediation Research Society Conference in Savannah, the Finance Theory Group Meetings in Madrid and Pittsburgh, the 2019 London Business School Private Equity Symposium, and the 2020 Paris December Finance meeting for helpful comments. All remaining errors are our own.