Drivers of Private Equity Investment in CEE and Western European Countries

Bernoth, Kerstin; Colavecchio, Roberta; Sass, Magdolna

doi:10.2139/ssrn.1639446

Cited by 6 publications

(3 citation statements)

References 38 publications

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“…However, as claimed by Lerner and Schoar (2005), the legal environment in which the PE firms operate profoundly influences the transactions into which those PE groups enter. A similar reasoning was attributed to Bernoth, Colavecchio, and Sass (2010) who, this time, identified the macro-economic environment as a key determinant. Further scrutiny would undoubtedly increase the precision of this topic.…”

Section: Discussionsupporting

confidence: 55%

An Empirical Analysis of the Determinants of the Performance of the Global Private Equity Funds Markets

Candasamy¹,

Jugurnath²

2015

JMAA

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Over the last decade, the private equity (PE) industry, primarily venture capital and leveraged buyout investments, has matured massively. Consequently, public interest towards that particular asset class has increased rapidly. This study seeks to empirically assess the determinants of private equity funds' (PEFs) performance around the world.The study comprises a panel data of 103 publicly traded PEFs globally for the period of 2007-2013. Generalized least squares (GLS) technique is employed to regress the explanatory variables. The objective is accentuated on the major contributing factors that make a PEF successful. The analysis, in this paper, examines the effect of fund size, investment size, geographical focus, and industrial specialization on return. The empirical results provide evidence that: (1) Fund size and industrial specialization were observed to have an insignificant influence on the funds' returns in our panels; (2) Investment size is positively related to fund performance, indicating that larger deal sizes exhibited superior performance level; and (3) Geographical focus exhibited a negative association with fund performance, leading to the conclusion that limited geographical deployment of funds or absence of market diversification resulted in a fall in funds' returns. Consequently, to proxy for return of funds, stock prices of listed PEFs under LPEQ listings were employed.

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Section: Discussionsupporting

confidence: 55%

An Empirical Analysis of the Determinants of the Performance of the Global Private Equity Funds Markets

Candasamy¹,

Jugurnath²

2015

JMAA

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“…The extant literature covers the topic selectively and remains away from the entirety of the subject. As the influx of private equity investments come through domestic as well as international means, most studies focus on country-level factors influencing private equity investment (Bernoth & Colavecchio, 2010; Kelly, 2012; Ndlwana & Botha, 2018; Oberli, 2014). This implies that researchers focus predominantly on macro-level factors for screening private equity investment targets.…”

Section: Open Issues and Discussionmentioning

confidence: 99%

Systematic Literature Review of Private Equity Determinants: Status, Evidence and Open Issues

Kapil

Rawal

2022

Vision: The Journal of Business Perspective

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Global private equity (PE) investments continue to increase at unprecedented levels over the last two decades, as investors are increasingly thriving over the potential of funded firms. The purpose of this study is to provide an understanding of determining factors that guide the flow of private equity investment in target firms. The existing academic research concerning selection determinants of private equity investment is restrictive and unstructured. These determinants are diverse and observe inconclusive results in extant literature. To identify the firm-level determinants of private equity investment, understand the current gaps in the literature and direct the future scope of work, the authors conduct a systematic literature review of empirical private equity investment studies. The results pointed out the open issues in private equity literature focusing on drivers of investment decisions and extracted the most frequently observed selection determinants of private equity investments along with their causal relationship. The review also acknowledges that there exists a coherence among private equity and M&A investment decisions and thus, expands the scope of research by including empirical studies on M&A determinants. The study creates a comprehensive database and identifies shortcomings in the relevant literature addressing private equity.

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“…At the most aggregate level, it seems that PE firms give an importance to the host economy and its legal framework before investing in a given company (Bernoth, 2010). When talking about economy and legal framework, we need to distinguish three elements that influence the PE firm activity: (i) the existence of an efficient work market, (ii) the nature of tax and legal background and (iii) the economic performance of the host economy (Cervaux, 2015).…”

Section: An Inquiry To Understand the Rational Motivations Behind Selmentioning

confidence: 99%

Inquiry Into the Moroccan Private Equity Industry: A Proposal of an Adapted Value Creation Framework

Taleb

Sadqi

2020

IJFR

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The Private Equity (PE) activity in Morocco has received so little attention until now. Aside from the professional association of PE in Morocco and other professional bodies concerned with the topic, the literature stream exploring the generation of value creation during a PE transaction is quite inexistent.The proposed paper is considered as the first attempt to tackle the value generation within a Private Equity transaction in the Moroccan context. We attempt during this paper to present a conceptual analysis of how PE firms may generate value on their portfolios level. Since data is a scarce resource in this field and especially in the context of emerging countries, we propose for this explanatory study to use the semi constructed interview with four major PE firms in the Moroccan landscape, which represents 50% of the PE transactions that occurred in the last three years, in order to (i) understand the general partners (GPs) decision-making process for a given transaction and (ii) explain what are the main value generation levers that are intended to be made into practice in order to maximize the value in a given transaction.

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Drivers of Private Equity Investment in CEE and Western European Countries

Cited by 6 publications

References 38 publications

An Empirical Analysis of the Determinants of the Performance of the Global Private Equity Funds Markets

An Empirical Analysis of the Determinants of the Performance of the Global Private Equity Funds Markets

Systematic Literature Review of Private Equity Determinants: Status, Evidence and Open Issues

Inquiry Into the Moroccan Private Equity Industry: A Proposal of an Adapted Value Creation Framework

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