Andreas Hammer

• Increasing holding periods are a notable trend in private equity and a concern to limited partners because they tie up committed capital. I iestigate whether the frequent use of Buy and Build (B&B) strategies can explain this trend. I find that B&B increases holding periods by up to 29%, which is robust to different identification strategies including the application of a survival-time treatment effect estimator. Further iestigating channels through which B&B increases holding periods, I identify factors that can mitigate but not avoid prolongation. Thus, my findings point at increasing illiquidity risk as an unintended "dark side" of B&B strategies._x000D_ Keywords: Private equity, buyout, M&A, buy and build, holding period, duration_x000D_ JEL Classification: G11, G23, G24, G34