Academic Research

News
  • Reading note on: “Exposed to the J-Curve: Understanding and Managing Private Equity Fund Investments”by Ulrich Grabenwarter and Tom Weidig
    As the European private equity and venture capital industry matures, more investors are interested in investing in this asset class. Before doing so, new limited partners can rely on several publications dedicated to the presentation of the private equity asset class in general and to the design of an investment programme in particular. The book by Ulrich Grabenwarter and Tom Weidig provides an extensive introduction to portfolio building and risk management.
  • Reading note on: “Investor relations von private-equity-partnerships” by Moritz Hagenmüller
    Lately, it seems commonly expected that many general partners are going to raise their next fund in 2005. Recent developments have proven that great historical returns do not prevent established teams to experience difficulties while fundraising. Therefore, teams being ready to launch their next fund will read with great interest the findings of Moritz Hagenmüller’s PhD thesis.
  • Performance Measurement and Asset Allocation for European Private Equity Funds
    The study ‘Performance Measurement and Asset Allocation for European Private Equity Funds’, research commissioned by the European Private Equity and Venture Capital Association (EVCA) and undertaken by CDC Ixis Capital Markets and Technische Universität München, argues that institutional investors should earmark 5-10% of their portfolio for private equity.
  • The Risk Profiles of Private Equity and Venture Capital
    In this paper, Tom Weidig and Pierre-Yves Mathonet draw the conclusions that private equity is a risky asset, but private equity investments are not necessarily so.
    They say that every type of private equity investment vehicle has a different risk profile and that diversification is of utmost importance in private equity, because it significantly reduces risk. As such, a direct investment has a 30% probability of total capital loss; a fund (or a portfolio of direct investments) has a very small probability of total loss and a fund-of-funds (or a portfolio of funds) has a small probability of any capital loss.
  • Determinants of Private Equity Fund Raising in Western Europe
    In a paper recently presented at the 2001 Financial Management Association European Conference, Jose Marti and Marina Balboa focus their attention on the determinants of private equity fund raising in Western Europe. After a presentation of the usual factors studied in the literature, the authors introduce a model that they test with European data.
  • Convertible securities - an optimal exit policy
    The use of convertible securities in deal structuring is widely known as a downside protection for the venture capitalist and as a device, which aligns the interest of management and private equity investors post investment. In a new study, Andreas Basha and Uwe Walz, researchers at the University of Tübingen, have developed a theoretical model, which concludes that convertible securities can provide an optimal exit strategy when two choices are at issue: IPO or Trade Sale.
  • Assessing the contribution of venture capital to innovation
    Conducted by Samuel Kortum and Josh Lerner “Assessing the contribution of venture capital to innovation” reveals the prominent role played by venture capital backing in the level of US innovation activity.

 

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Links

Included in this section are some links to academic sources of information relevant to private equity. If you have an academic publication that you wish to present to EVCA for reference, please contact us at info@evca.eu. 

 

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