Drivers of holding period firm-level returns in private equity-backed buyouts

► We extend the research on the drivers of returns in private equity backed buyouts. ► We examine deal, industry, and macroeconomic level drivers and how they interact. ► While most governance variables are insignificant, the use of a ratchet adds value. ► Also leverage, buyout size, acquisitions, and industry growth have positive effects. ► Industry growth effect is greatest in insider, divisional, and top-quartile deals.