We show how the change to differential voting rights allows dominant shareholders to retain control even after selling substantial economic ownership in the firm and diversifying their wealth. This unbundling of cash flow and control rights leads to more dispersed economic ownership and a closer...

We examine exits of private equity sponsors after IPOs of portfolio firms via follow-on secondary equity offerings and third party takeovers. Sponsors retain major ownership in listed portfolio firms for lengthy periods after IPOs, well beyond lockup expiration. After private equity post-IPO...