How Do Investment Patterns of Independent and Captive Private Equity Funds Differ? Evidence from Germany

Item Type Journal paper
Abstract

© Swiss Society for Financial Market Research 2006. Empirical literature emphasizes a positive contribution of private equity investors, which results from their combined provision of capital, monitoring, and management support. The aim of this study is to show that these previous results, which are based mostly on the analysis of US independent closed-end private equity funds, cannot be generalized since the private equity industry should not be treated as homogenous. We argue that it is necessary to distinguish between different types of private equity providers because their differing governance structures, strategic goals and experiences have a decisive influence on their value adding activities. The results of this study-which uses a data set of 179 German private equity-backed companies-are consistent with the conjecture that independent and corporate private equity providers tend to have a more pronounced role in corporate governance and monitoring of the companies they finance, than bank-dependent and governmental funds which often serve only as bridge investors.

Authors Tykvova, Tereza
Journal or Publication Title Financial Markets and Portfolio Management
Language English
Subjects business studies
economics
finance
HSG Classification contribution to scientific community
HSG Profile Area SOF - System-wide Risk in the Financial System
Refereed Yes
Date 2006
Volume 20(4)
Number Special Issue: Alternative Investments
Page Range 399-418
Number of Pages 19
Publisher DOI 10.1007/s11408-006-0036-0
Depositing User Diky Seematter-Yardong
Date Deposited 25 Feb 2020 11:12
Last Modified 03 Mar 2020 14:05
URI: https://www.alexandria.unisg.ch/publications/259438

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Citation

Tykvova, Tereza (2006) How Do Investment Patterns of Independent and Captive Private Equity Funds Differ? Evidence from Germany. Financial Markets and Portfolio Management, 20(4) (Special Issue: Alternative Investments). 399-418.

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https://www.alexandria.unisg.ch/id/eprint/259438
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