RT Journal Article
SR Electronic
T1 Institutional Affiliation of General Partners and Private Equity Investment Choices
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 25
OP 41
DO 10.3905/jpe.2010.13.4.025
VO 13
IS 4
A1 Nancy Huyghebaert
YR 2010
UL https://pm-research.com/content/13/4/25.abstract
AB This article empirically investigates whether and how the institutional affiliation of the general partners in a private equity fund affects the fund’s choices of investment stage (seed and start-up venture capital versus later-stage expansion and buyout financing), industry, and geographical focus. Overall, the results show that compared to independent funds, bank-affiliated funds prefer expansion and buyout financing, whereas corporate subsidiaries favor start-up financing. Funds affiliated with the government and public organizations are less interested in late-stage ventures. The author finds little evidence of industry specialization by general-partner affiliation. Finally, corporate subsidiaries tend to invest globally. In contrast, funds affiliated with banks, the government, and public organizations have a more narrow geographical focus.TOPICS: Private equity, in portfolio management, developed, statistical methods