scholarly journals THE IMPACT OF THE INTEREST RATE ON THE LEVEL OF ACQUIRED CAPITAL AND INVESTMENTS BY VENTURE CAPITAL FUNDS AND PRIVATE EQUITY FUNDS ON THE POLISH MARKET

10.23856/1101 ◽  
2014 ◽  
Vol 11 (4) ◽  
pp. 11-21
Author(s):  
Piotr Zasępa
Keyword(s):  
Interest Rate ◽  
Venture Capital ◽  
Private Equity ◽  
Equity Funds ◽  
Private Equity Funds ◽  
The Interest Rate ◽  
The Impact

Cycle on the Warsaw Stock Exchange and the level of underpricing of venture capital and private equity funds over 2000-2013

2017 ◽  
Vol 18 (1) ◽  
pp. 0-0
Author(s):  
Piotr Zasępa
Keyword(s):  
Venture Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
Stock Exchange ◽  
Development Fund ◽  
Public Market ◽  
Equity Funds ◽  
Warsaw Stock Exchange ◽  
Private Equity Funds ◽  
The Impact

Investments of venture capital and private equity funds are made in young fast growing companies whose founders are characterized by a lack of capital for their development. Fund investment cycle is assumed to follow the process of divestment after a period of rapid growth and dynamic growth of the company. One of the methods used willingly completion of the investment by the funds is to put the company on the stock exchange. It is quite a long and expensive process, however, that the valuation of the fund may obtain a public market is often the highest possible. The process has, however, affected by the condition of the public market and current trends in the market for initial public offering. This is also reflected in the so-called underpricing of the offer or the difference between the opening and closing of the first day of trading of the company. This article aims to analyze the impact of trends on the stock exchange on the level of underestimation of the value of the transaction IPO on the Warsaw Stock Exchange in the period 2000-2013.

scholarly journals ASSESSMENT OF THE INVESTMENT PROJECT EFFECTIVENESS FOR THE ACQUISITION OF COMPANIES BY THE DIRECT INVESTMENT FUND

2020 ◽  
pp. 164-171
Author(s):  
G. G. Utenov
Keyword(s):  
High Performance ◽  
Private Equity ◽  
Investment Project ◽  
Operational Efficiency ◽  
Investment Fund ◽  
Investment Projects ◽  
Private Equity Fund ◽  
Equity Funds ◽  
Private Equity Funds ◽  
The Impact

The performance of investment projects in acquisitions of companies by private equity funds has been explored by assessing the financial and valuation results of such transactions in two directions: change in the valuation multiple of an acquired company over the period of the investment project and the impact of a fund on a company’s operational efficiency. As a result of the analysis, the hypothesis of the higher EV/EBITDA exit multiple of the private equity fund compared to the same entry multiple was not confirmed. However, the hypothesis that private equity funds are able to increase the operational efficiency of portfolio companies on average better than other types of investors, confirms the effectiveness of private equity funds and high performance of such investment projects.

scholarly journals The Impact of the Subprime Crisis on the Course

Equilibrium ◽  
2011 ◽  
Vol 6 (2) ◽  
pp. 7-22 ◽  
Author(s):  
Alina Gorczyńska
Keyword(s):  
Mergers And Acquisitions ◽  
Private Equity ◽  
Developed Countries ◽  
Subprime Crisis ◽  
Equity Funds ◽  
Noticeable Improvement ◽  
Private Equity Funds ◽  
Reducing Costs ◽  
The Developed Countries ◽  
The Impact

The subprime crisis limited the investment activities of economic entities. The manifestation of the crisis was the decrease in the quantity and value of cross-border consolidation processes. These trends were especially visible in the developed countries. The main reasons for the reduction of mergers and acquisitions were the restrictions of access to external capital due to the collapse of stock markets, banks crash, the decline of private equity activity and decrease of the financial health of businesses as well as market pessimism. In addition to reduction and therefore cancellation of several mergers and acquisitions, these factors forced certain actions upon the consolidating companies. Among other things, they led to restructuring activities aimed at reducing costs. They also contributed to a number of divestments. Since the second half of 2009, there has been a noticeable improvement of the financial situation of enterprises, as well as of general economic indicators (GDP). However, these phenomena are still accompanied by unregulated financial markets situation, inter alia, concerning the regulation limiting the emergence of financial crises, including relation to the activities of private equity funds. Therefore, it is difficult to determine whether the period of crisis in relation to transactions of consolidation is over, and if we can talk about recovery in the course of these processes.

A Survey on Enterprise Opportunities and Analysis of Technological Startups and Valuation

2020 ◽  
pp. 84-91
Author(s):  
Anandakumar Haldorai ◽  
Arulmurugan Ramu
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Darwinian Selection ◽  
Know How ◽  
Investment Value ◽  
Finance Development ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Traditional Approaches ◽  
Start Ups

Enterprise technological start-ups represent the newly created firms with the possibility to rapidly develop and assume liquidity in the next few decades. The main purpose of this mode of expansion is to enhance finance development over considerably limited collateralizable fiscal assets. However, this is considered unattractive from the ancient banking corporations which have now been replaced by more sophisticated and specialized intermediaries such as the private equity funds or the venture capital that diversify business portfolios in reference to their strategies on multi-annual exit with firm projected increment in investment value that endured the Darwinian selection. In that regard, this paper conducts evaluation of firms and reviews their technological start-ups following traditional approaches, flanked based on certain elements derived from multiple-exit methods and varied probabilistic scenarios. The technological footprints showcase the evaluation analogies with know-how, intangibles and patents that are connected to certain sectors.

scholarly journals Venture Capital and Private Equity Investment Strategies in Selected European Countries

e-Finanse ◽  
2015 ◽  
Vol 11 (4) ◽  
pp. 34-45
Author(s):  
Krzysztof Dziekoński ◽  
Sławomir Ignatiuk
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Research Question ◽  
High Growth ◽  
Equity Capital ◽  
Growth Potential ◽  
Investment Strategies ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Entrepreneurial Activities

Abstract Private equity and venture capital (PE/VC) funding is the provision of equity capital by financial investors to non-quoted companies with high growth potential. It has a particular emphasis on entrepreneurial activities rather than on mature businesses. PE/VC investors differ on several dimensions including: investment targets, screening evaluation methods, governance mechanisms, and objectives. The paper is a continuation of the discussion that concerns investment strategies of PE/VC funds. While studying the PE/VC market it is important to analyze the origin and structure of capital. The authors assumed that different types of investors have different investment strategies. Our research is an attempt to answer the following research question: whether the investor type, on the European PE/VC market, has an impact on the selection of industries. The paper presents results of statistical analysis of venture capital and private equity funds investment strategies in selected countries.

scholarly journals Venture Capital and Private Equity Investment Preferences in Selected Countries

e-Finanse ◽  
2015 ◽  
Vol 11 (3) ◽  
pp. 128-137
Author(s):  
Krzystof Dziekoński ◽  
Sławomir Ignatiuc
Keyword(s):  
Venture Capital ◽  
Capital Market ◽  
Private Equity ◽  
New Technology ◽  
Investment Strategies ◽  
Equity Investment ◽  
Equity Funds ◽  
Return On Capital ◽  
Private Equity Funds ◽  
Capital Access

Abstract Sources of capital to finance companies in the SME sector is one of the basic conditions for the functioning and development of enterprises, especially in the early phase of their development. Increasingly popular is the use of capital market instruments, Private Equity, Venture Capital, Business Angels or Mezzanine. Funding of this kind can finance risky investments in return for a higher expected rate of return on capital. Access to financial resources and the conditions under which entrepreneurs can use them can determine the introduction of new technology, new products and services, expand distribution channels, implement changes that may lead to the growth in competitiveness and above all, innovation, thus the growth of the company. The paper presents results of statistical analysis of the venture capital and private equity funds investment strategies in selected countries. As a result investment profiles are created.

scholarly journals The Role of the Polish Private Equity Sector in the CEE Region

2019 ◽  
pp. 131-142
Author(s):  
Jacek Grzywacz ◽  
Ewa Jagodzińska-Komar
Keyword(s):  
Private Equity ◽  
Western Europe ◽  
Early Stage ◽  
Developed Countries ◽  
Equity Market ◽  
Growth Potential ◽  
Equity Funds ◽  
Private Equity Funds ◽  
The Impact

The aim of the article is to analyse the position of the Polish private equity sector as a leading player in the CEE region and to assess the impact of these funds on economic development. It has been pointed out that the fund sector is operating in an increasingly unpredictable environment (which could be seen during the financial crisis) and operates based on demanding regulations and growing risk. The paper presents the role of private equity funds in the CEE region, which by 2004 had seen a noticeably faster growth than in Western Europe, due to the transition to a market economy. The Polish private equity market in the CEE region was further analysed, which as the largest economy in the CEE region is a very attractive place for investors. The conclusions and directions of the role of private equity funds were presented, and it was emphasised that Poland and the whole CEE region are at an early stage of their market development, but their distance to Western Europe decreases from year to year. Currently, the CEE private equity market in the most developed countries offers great opportunities to its investors thanks to high competition, high growth potential and comprehensive solutions.

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