A cross-country comparison of full and partial venture capital exits

Private equity returns and disclosure around the world

“…Consistent with prior work (Gompers and Lerner, 1999), venture capitalists will choose a partial exit (thereby delaying liquidity) when informational problems faced by the new owners are more pronounced. Our specifications control for industry factors, year effects, stage of development at first investment, investment duration, and investment syndication (consistent with Gompers and Lerner, 1999; see also Cumming and MacIntosh, 2003). The data indicated controls for other factors were not warranted.…”

“…The scope of our data is similar to Black and Gilson (1998) structures with a couple of hundred of observations, but do not have data on returns. Cumming and MacIntosh (2003) have data on exits and returns in Canada and U.S., but are limited in both breadth and depth of transactions. Similarly, Cumming and Fleming (2003) have data on a couple of hundred investments from 13 Asia-Pacific countries, but lack details comprised herein, such as unexited IRRs, etc.…”

“…This is distinct from 9 A partially realized investment involves a disposition whereby less than 100% of the investor's ownership interest has been sold (for empirical work on topic, see Gompers and Lerner, 1999;Cumming and MacIntosh, 2003; for theoretical work on topic, see Neus and Walz, 2004). The complete return to the investment cannot be perfectly measured for partial exits our dataset.…”

Assessing the impact of public venture capital programmes in the United Kingdom: Do regional characteristics matter?

“…A second approach focuses on the level of the VC fund, trying to assess the financial performance of publicly supported VC funds relative to private VC funds (Cumming and Macintosh, 2003;Brander et al, 2002). For instance, the study of Murray (1998) on the European Seed Capital Fund Scheme highlights that the target Internal Rate of Return (IRR) for the managers of the publiclysupported VC funds were significantly lower than the target IRR for commercial VC funds" managers.…”

What determines the exit decision for leveraged buyouts?

“…4 Using our much larger pan-European dataset we are able to identify the main factors that influence whether private equity funds choose to exit via IPO, trade sale, or a sale to another financial buyer. Cumming and MacIntosh (2003b), focus mainly on the determinants of a partial exit, as opposed to a full exit, within the full range of exit vehicles and found that the greater the degree of information asymmetry between the private equity firm and the buyer, the greater the likelihood of a partial exit and suggested that partial exits were used as a signal of a portfolio company's quality.…”