Private equity fundraising and firm specialization

Résultats de recherche: Contribution à un journal/une revueArticle

Résumé

Using a firm-level perspective, this study examines the effect of specialization on the fundraising activities of private equity (PE) firms. We consider three dimensions of specialization: stage, industry and geographic location. Using a large sample of U.S. PE firms, we find that specialized firms raise new funds more quickly than generalists only if the type of the new fund coincides with the current area of the firm's expertise, suggesting that expertise cannot be easily extended to other areas. We further explore what explains the observed link and provide evidence supporting the idea that specialization accelerates future fundraising through increased value-adding to the current portfolio of PE firms. We also show that, specialization benefits increase as the PE firm becomes more experienced.

langueAnglais
Pages259-274
journalQuarterly Review of Economics and Finance
Volume64
Les DOIs
étatPublié - 2017

Empreinte digitale

Private equity
Fund raising
Expertise
Geographic location
Industry location
New firms

mots-clés

    Citer ceci

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    title = "Private equity fundraising and firm specialization",
    abstract = "Using a firm-level perspective, this study examines the effect of specialization on the fundraising activities of private equity (PE) firms. We consider three dimensions of specialization: stage, industry and geographic location. Using a large sample of U.S. PE firms, we find that specialized firms raise new funds more quickly than generalists only if the type of the new fund coincides with the current area of the firm's expertise, suggesting that expertise cannot be easily extended to other areas. We further explore what explains the observed link and provide evidence supporting the idea that specialization accelerates future fundraising through increased value-adding to the current portfolio of PE firms. We also show that, specialization benefits increase as the PE firm becomes more experienced.",
    keywords = "Fundraising, Private equity, Specialization",
    author = "Maia Gejadze and Pierre Giot and Armin Schwienbacher",
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    Private equity fundraising and firm specialization. / Gejadze, Maia; Giot, Pierre; Schwienbacher, Armin.

    Dans: Quarterly Review of Economics and Finance, Vol 64, 2017, p. 259-274.

    Résultats de recherche: Contribution à un journal/une revueArticle

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    AU - Giot, Pierre

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    AB - Using a firm-level perspective, this study examines the effect of specialization on the fundraising activities of private equity (PE) firms. We consider three dimensions of specialization: stage, industry and geographic location. Using a large sample of U.S. PE firms, we find that specialized firms raise new funds more quickly than generalists only if the type of the new fund coincides with the current area of the firm's expertise, suggesting that expertise cannot be easily extended to other areas. We further explore what explains the observed link and provide evidence supporting the idea that specialization accelerates future fundraising through increased value-adding to the current portfolio of PE firms. We also show that, specialization benefits increase as the PE firm becomes more experienced.

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