Desai, PranavBiedermann, Fabian Ronald2024-09-272024-09-272023-05-312023-05-17http://hdl.handle.net/10362/172535Using two novel samples of private equity (PE) investment and exits, the study reveals that economic policy uncertainty (EPU) has a small negative impact on PE investment activity. This finding indicates a lower sensitivity compared to venture capitalists. Further results show that EPU is associated with lower entry and exit multiples, implying that PE firms can seize opportunities by investing in high EPU and exiting in low EPU. Additionally, mature PE firms demonstrate higher deal-making activity than their counterparts in these periods, suggesting that they capitalize on these opportunities. However, evidence for superior returns in high EPU periods remains limited.engPrivate equityEconomic policy uncertaintyInvestment activityReturnsmaster thesis203365780