scholarly journals Formation of Proactive Strategies of Chinese Private Equity Funds in the Russian Corporate Control Market

2019 ◽  
pp. 660-677
Author(s):  
Maria M. Musatova ◽  
Larisa I. Lugacheva ◽  
Elena A. Solomennikova
Keyword(s):  
Private Equity ◽  
Import Substitution ◽  
Corporate Control ◽  
Public Companies ◽  
Russian Market ◽  
Factors Affecting ◽  
Russian Economy ◽  
Equity Funds ◽  
Multi Agent ◽  
Private Equity Funds

The article discusses the boundaries and contours of the possible institutional behavior of private equity funds (PEFs) in the Russian Federation in modern conditions. It analyzes the transformation of PEF sectoral interests in the Russian assets of non-public companies in the period of economic instability. Besides, it gives a relevant assessment of changes in the regional aspects of interaction between PEFs and recipient companies from Russia against the background of sanctions and import substitution, as well as private equity cycle. The article presents the modern metrics of Chinese PEFs and a multi-level monitoring of existing Chinese PEF projects in the Russian economy. It also analyzes the effects of multi-agent relations of PEFs and target companies in Russia against the background of a gradual recovery of the country’s economic growth. The article discusses the current and preferred format for the participation of investors in the PE market in the context of the adaptation of the Russian economy to the sanctions regime. It identifies the factors affecting the prospects and dynamics of the development of Chinese PEFs with an investment mandate for Russia and discusses the mechanisms of institutional support for expanding the presence of Chinese PEs in the Russian market for corporate control

scholarly journals Corporate Governance and the Time to Full Exit in the Private Equity Divestment Process on Warsaw Stock Exchange

2017 ◽  
Vol 2 (328) ◽  
Author(s):  
Tomasz Sosnowski
Keyword(s):  
Corporate Governance ◽  
Private Equity ◽  
Stock Exchange ◽  
General Meeting ◽  
Factors Affecting ◽  
Private Equity Fund ◽  
Equity Funds ◽  
Warsaw Stock Exchange ◽  
Private Equity Funds ◽  
Set Up

This paper investigates empirically the links between the specific solutions of corporate governance in portfolio companies of private equity funds and the duration of divestment process after the first listing of company’s shares on the stock market. Using a sample of 41 IPOs from Warsaw Stock Exchange between 2005 and 2015 I find that the pre‑IPO set up corporate governance significantly affects the time of the private equity funds’ full exits. I find evidence that the higher share of private equity funds in the total number of votes at the general meeting of the company’s shareholders before the IPO negatively impacts the chance of the full exit occurrence. However, the data reveal that the syndication and previous experience of private equity fund in IPO exits are important factors affecting the probability of the investment’s end.

scholarly journals Performance of Private Equity Funds in Korea

2020 ◽  
Vol 49 (2) ◽  
pp. 163-187
Author(s):  
Kibeum Bae ◽  
Junesuh Yi
Keyword(s):  
Private Equity ◽  
Investment Strategy ◽  
Fund Performance ◽  
Factors Affecting ◽  
Economic Cycles ◽  
Gdp Growth Rate ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Factors Affecting Performance ◽  
Fund Size

This study analyzes performance of PEFs in Korea. Using the unique return data of 134 private equity funds collected from limited partners (LP) including pension funds, this study explores performance differences by investment step, strategy, timing, and fund size. This study also investigates risk adjusted return, return on economic cycles, and likelihood of performance exaggeration by general partners (GP) on liquidated funds. In addition, this paper examines factors to affect PEF performance. We find that Korean PEF records 6.12% of IRR and 1.22 of investment multiple on average. Fund performance is also found to be superior in liquidated funds by investment step, buyout funds by investment strategy, and small funds by fund size. As the result of analyzing performance of only liquidated funds, reflecting the nature of private equity funds where most of the profits are realized at the time of harvesting, we find that risk adjusted returns by measuring KS-PME, PME+, and direct alpha overperform market returns, and that funds liquidated during the recession display higher returns than funds liquidated during the boom. In terms of factors affecting performance, fund performance is negatively related to fund life, market return, and GDP growth rate.

Replicating Private Equity with Value Investing, Homemade Leverage, and Hold-to-Maturity Accounting

2021 ◽  
Author(s):  
Erik Stafford
Keyword(s):  
Private Equity ◽  
Small Firms ◽  
Publicly Traded ◽  
Investment Performance ◽  
Value Investing ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Asset Selection ◽  
Investment Process ◽  
Stock Portfolio

Abstract The contributions of asset selection and incremental leverage to buyout investment performance are more important than typically assumed or estimated to be. Buyout funds select small firms with distinct value characteristics. Public equities with these characteristics have high risk-adjusted returns relative to common factors. Adding incremental leverage to a publicly traded stock portfolio increases both risks and mean returns in this sample. Direct investments in private equity funds earn lower mean returns than a replicating strategy designed to mimic these key economic features of their investment process with public equities and brokerage loans.

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