Determinants of Private Equity Investments across the BRICS Countries

2018 ◽  
Keyword(s):  
Private Equity ◽  
Capital Investments ◽  
Explanatory Variables ◽  
Developed Economies ◽  
Brics Countries ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Equity Investments ◽  
Venture Capital Investments ◽  
Private Equity Investments

The determinants of private equity investments (particularly venture capital investments) have been studied extensively across developed economies, but this is not the case across emerging markets. This study primarily focuses on the determinants of private equity (inclusive of all sub-classes) among the BRICS countries. Six macroeconomic and market-related explanatory variables, including the Corruption Perception Index, are examined. Private equity funds raised across BRICS serve as the proxy for private equity investments. The study reveals that GDP growth and real interest rate are both statistically significant and positively related to private equity investments across the BRICS countries. Furthermore, market capitalization growth and corporate tax rates are statistically significant, and both are found to be negatively related to the dependent variable.

scholarly journals Creating value in investments with the use of private equity funds

2020 ◽  
pp. 9-20
Author(s):  
Olga Mikołajczyk ◽  
Bartosz Owedyk
Keyword(s):  
Literature Review ◽  
Foreign Language ◽  
Value Creation ◽  
Private Equity ◽  
Investment Value ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Equity Investments ◽  
Language Literature ◽  
Private Equity Investments

The influence of the private equity sector on the contemporary economy is quite significant. This is why the present paper attempts to examine mechanisms private equity investors apply in order to increase the value of their investments. The literature review has identified the most fundamen- tal elements of creating value on the basis of empirical, academic studies that verified hypotheses regarding the influence of particular mechanisms on the process of value creation in private equity investments. This paper is divided into five parts that describe the elements of the investment pro- cess, research into value creation, financial arbitration, as well as direct and indirect mechanisms of creating investment value. The paper is mainly based on the review of foreign-language literature.

scholarly journals What Drives Private Equity Investments in Romania?

2015 ◽  
Vol 25 (4) ◽  
pp. 25-42
Author(s):  
Mihai Precup
Keyword(s):  
Economic Growth ◽  
Unemployment Rate ◽  
Private Equity ◽  
Market Capitalization ◽  
Equity Funds ◽  
Corruption Index ◽  
Private Equity Funds ◽  
Equity Investments ◽  
New Variables ◽  
Private Equity Investments

Abstract This paper aims at presenting the determinants of private equity investments in Romania over the period 2000 - 2013. Additionally, this paper presents the main highlights in terms of evolution, source of funding and activities in which the private equity funds invested during the crisis. Starting from the existing literature, this paper extends the analysis of private equity drivers to Romanian market by including variables such as: economic growth, market capitalization, interest rate, unemployment rate and public R&D expenditure which were already tested in previous papers. In addition, this paper introduces new variables such us productivity and corruption index which we consider important factors in explaining the evolution of private equity investments in Romania. The results of our empirical model confirmed existing hypothesis regarding the importance of some determinants such as: unemployment rate, economic growth, market capitalization and corruption. Based on our empirical results, we have pointed several strategic directions that are meant to support the development of the private equity market in Romania. Keywords: private equity; economic growth; market capitalization; unemployment rate; corruption; private equity determinants; Romania.

scholarly journals Venture Capital and Private Equity Funds as Source of Financing Enterprises in Poland

2020 ◽  
Vol 13 (3) ◽  
pp. 307-327
Author(s):  
Teresa Janicka-Michalak
Keyword(s):  
Venture Capital ◽  
Private Equity ◽  
Capital Investments ◽  
Economic Market ◽  
Development Fund ◽  
Equity Funds ◽  
Private Equity Funds ◽  
The Subject ◽  
Venture Capital Investments

SummarySubject and purpose of work: The main issue of the work is to present the essence of venture capital, i.e. Venture Capital funds and Private Equity funds. The aim of the article is to indicate the size of the share and the role of funds in financing enterprises located in Poland. The time horizon of the presented data covers the years 2012-2019.Materials and methods: The material for analysis is available statistical data, reports of commercial companies and other entities researching the size of the Venture Capital and Private Equity sector in Poland. For the purposes of the study, the literature on the subject was used as well as the data of: Narodowy Centrum Badań i Rozwoju, KPMG Sp. z o.o., the State Development Fund, the Startup Poland Foundation and the European Association of Venture Capital and Private Equity Investors. The method of analysis and criticism of the literature and the method of examining documents were used.Results: The research carried out in Poland makes it possible to assess the size of the implemented venture capital investments, i.e. VC and PE funds, over the years 2012-2019. The presented data indicate that the share of funds in financing Polish enterprises has a variable tendency. The percentage share of VC and PE investors in Europe in 2017-2018 is also variable.Conclusions: The Polish economic market is an attractive investment area in terms of cash allocation needs by venture capital funds. Increasing awareness of enterprise managers about the benefits of using these capitals to subsidize the activities of entrepreneurs allows them to discount VC and PE funds in innovative startups and in other processes, the implementation of which takes place in further phases of the company’s operations. The studies conducted so far cover the entire territory of Poland and are of an overview nature. The VC and PE funds, which are a new financial instrument, allow Polish enterprises to implement innovative projects.

scholarly journals Impact of Private Equity in Colombian Companies: A Case Study

2018 ◽  
Vol 4 (3) ◽  
pp. 68-73
Author(s):  
Lina Maria Maya Toro ◽  
Manuela Gallon Bedoya
Keyword(s):  
Private Equity ◽  
Stock Exchange ◽  
Private Capital ◽  
Investment Fund ◽  
Capital Investments ◽  
Private Equity Fund ◽  
Professional Managers ◽  
Equity Funds ◽  
Private Equity Funds ◽  
The Impact

Abstract A private equity fund is an investment vehicle managed by a professional team, whose main objective is to provide a medium or long-term return to its investors through capital investments in companies that are not listed on the stock exchange. In Colombia the first professional managers of private equity funds arrived in 2005, Since that date, several companies have been formed dedicated to this, such as Valorar Futuro, an investment fund which bought Aderezos and Higietex. The aim of this research was to determine the impact of the leverage of a private capital fund on the economic growth of a company. Financial balances of the companies Aderezos and Higietex were obtained from 2013 to 2017 and analyzed. Finally, it was found that the private capital fund allowed growth in the companies Aderezos and Higietex.

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