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 Trends in Underpricing of Private Equity Backed IPO at the Capital Market in Poland in the Years 2000–2018

2019 ◽  
Vol 53 (4) ◽  
pp. 153
Author(s):  
Piotr Zasępa
Keyword(s):  
Venture Capital ◽  
Financial Markets ◽  
Capital Market ◽  
Global Economy ◽  
Private Equity ◽  
Stock Exchange ◽  
Rates Of Return ◽  
Equity Funds ◽  
Warsaw Stock Exchange ◽  
Private Equity Funds

<p>The global economy is distinguished by the dynamic development of financial markets and with it creating a new specific segments of the market. One of them is the market for venture capital and private equity funds, which is developing very dynamically for more than 50 years. This article aims to analyze the level of underestimation of the IPO on the Warsaw Stock Exchange companies supplied by venture capital and private equity funds. Analyzing the rates of return of 54 companies supplied with VC funds and 453 companies which do not have the support of venture capital funds in the 2000–1018 period, it should be stated that traditional companies reached the lower level of underestimation. For companies a broad market level underestimation of the IPO was 9.99% and for companies with VC/PE support – 9.12%.</p>

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 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.

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 What Determines the Success of an IPO? Analysis of IPO Underpricing on the Warsaw Stock Exchange

2021 ◽  
Vol 8 (55) ◽  
pp. 1-14
Author(s):  
Paweł Małachowski ◽  
Dominika Gadowska-dos Santos
Keyword(s):  
Venture Capital ◽  
Initial Public Offering ◽  
Private Equity ◽  
Main Part ◽  
Stock Exchange ◽  
Rate Of Return ◽  
Ipo Underpricing ◽  
Warsaw Stock Exchange ◽  
Public Offering

AbstractThis article aimed to analyse the factors that influence the level of underpricing of an initial public offering (IPO) on the Warsaw Stock Exchange (WSE), based on the example of 101 companies debuting on the main market between 2010 and 2019. We discuss the theories that explain IPO underpricing and the research conducted so far on the Polish market. In the main part of the article, we present the results of our study aimed at identifying and characterising the hitherto-unrecognised factors determining IPO underpricing, which is a contribution to the current research on WSE trends. Our findings point to three variables that influence the level of underpricing: the involvement of private equity or venture capital funds in the transaction, the rate of return of the WSE Index in the 6 months before the IPO, and the amount of capital offered during the debut.

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.

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