Unlevered cost of capital is the cost of capital for an all-equity firm. Compared to the businesses utilized in earlier studies, all-equity firms enable a more accurate evaluation of firm market value and risk as well as a clearer link between independent factors and dependent variables. Private equity companies include, for instance.
The Carlyle Group, Kohlberg Kravis Roberts & Co. (KKR), and Blackstone. A private equity firm's engagement with the businesses it invests in might entail mentorship and industry knowledge in addition to financial support. A private equity firm is an investment management firm that invests in startup or operating companies.
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