An Integrative Approach to the Determinants of Private Equity Fundraising

Balboa, Marina; Martí, José

doi:10.2139/ssrn.493344

Cited by 22 publications

(20 citation statements)

References 20 publications

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“…We detect its high correlation of 0.831 with raised funds (at a 0.000 significance level). This is in line with Balboa and Martí (2003) who highlight the importance of historical activity and the maturity of a national VC/PE market for its further development. The result is not surprising, as one would expect investors to continue allocating their capital where a historical track record of successful transactions is already proven.…”

Section: Potential Endogeneitysupporting

confidence: 87%

“…Sapienza et al (1996) mention that acceptance in a country's society and the historical development of the VC/PE market determines investor confidence. Balboa and Martí (2003) find that annual fundraising volume is highly dependent on the previous year's market liquidity. Chemla (2005) argues that the management of VC/PE funds is costly.…”

Section: The Importance Of Economic Activitymentioning

confidence: 90%

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How attractive is central Eastern Europe for risk capital investors?

Groh

Liechtenstein

2009

Journal of International Money and Finance

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Section: Potential Endogeneitysupporting

confidence: 87%

Section: The Importance Of Economic Activitymentioning

confidence: 90%

How attractive is central Eastern Europe for risk capital investors?

Groh

Liechtenstein

2009

Journal of International Money and Finance

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“…Sapienza et al (1996) mention that acceptance in a country's society and the historical evolution of its VC/PE market determines investor confidence. Balboa and Martí (2003) find that annual fundraising volume is strongly dependent on the previous year's market liquidity. Chemla (2005) argues that the management of VC/PE funds is costly.…”

Section: Literature On the Importance Of Economic Activitymentioning

confidence: 85%

“…We refer to Sapienza et al (1996), and Balboa and Martí (2003) and include a lagged variable for VC/PE investments over a three year average. It can be argued that including this parameter immediately increases the tracking power of the attractiveness index.…”

Section: A2 Data For the Depth Of Capital Market Constructmentioning

confidence: 99%

The European Venture Capital and Private Equity country attractiveness indices

Groh¹,

Liechtenstein²,

Lieser³

2010

Journal of Corporate Finance

192

111

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“…This division will be the core of the development of the PE/VC market, since the centralization in the capital market is a precondition for the existence of a PE/VC vibrant market, given that a welldeveloped capital market makes an exit strategy possible through a public offer. In the same way, Balboa and Martí (2004) showed dependence between the growth of fundraising volume by PE/VC funds and the market liquidity in the previous year.…”

Section: Market Functioning and Literature Reviewmentioning

confidence: 69%

Private Equity and Venture Capital Funds: What Drives the Demand and Supply?

Dias

Macedo

2016

BAR, Braz. Adm. Rev.

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This study investigates determinants for the demand and supply for PE/VC funds. Six factors were identified through Factor Analysis: Economic Activity, Development of Stock Markets, Corporate Governance, Social and Environmental Development, Entrepreneurship and Taxation. These factors were defined through 25 variables and transformed into five factors by factor analysis. The resulting factors were used in econometric models for investigating relationships among said factors and the fundraising of PE/VC funds first, and then with the amount invested by PE/VC funds. The results indicate that investments are adversely affected by the depth of the capital market: the PE/VC funds seek an exit strategy which the stock market offers through IPOs (Initial Public Offering). Other significant factors were protection of investors, social and environmental development and level of entrepreneurship. Different from expected, the economic activity was of low impact on demand. The result seems controversial but its lack of significance highlights the importance of the capital market (through IPOs as a way of disinvestment) as a key driver of the PE/VC market. Taxation was also not significant to the demand side, a fact which denotes that the government can influence the local PE/VC market, and that it should offer high enough discount rates or tax incentives to mitigate the effect of other barriers faced by the PE/VC market.

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An Integrative Approach to the Determinants of Private Equity Fundraising

Cited by 22 publications

References 20 publications

How attractive is central Eastern Europe for risk capital investors?

How attractive is central Eastern Europe for risk capital investors?

The European Venture Capital and Private Equity country attractiveness indices

Private Equity and Venture Capital Funds: What Drives the Demand and Supply?

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