Winning a Deal in Private Equity: Do Educational Networks Matter?

Item Type Monograph (Working Paper)
Abstract

Networks can establish business connections and facilitate information flows; but how valuable are they in competitive settings, such as in the deal generation of private equity funds? We find that educational ties between management teams of acquiring fund and target company are frequent (around 15%) and increase the odds of winning a deal (by 79%). When competing with other funds, exclusivity tends to matter more than the university from which it derives. In addition, educational ties also allow prevailing home bias to be mitigated. Yet, the pure existence of network-based relationships does not automatically lead to better deal performance.

Authors Füss, Roland; Fuchs, Florian; Jenkinson, Tim & Morkötter, Stefan
Language English
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
Date October 2017
Publisher SoF - HSG
Place of Publication St. Gallen
Series Name School of Finance Working Paper Series
Volume 2017/15
Number 15
Number of Pages 42
Contact Email Address roland.fuess@unisg.ch
Depositing User Beatrix Kobelt-Glock
Date Deposited 29 Aug 2017 11:19
Last Modified 23 Aug 2018 00:23
URI: https://www.alexandria.unisg.ch/publications/251485

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Citation

Füss, Roland; Fuchs, Florian; Jenkinson, Tim & Morkötter, Stefan: Winning a Deal in Private Equity: Do Educational Networks Matter? School of Finance Working Paper Series, 2017, 15.

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https://www.alexandria.unisg.ch/id/eprint/251485
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