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Characterisation Of The Reputation Of Private Equity Managers: Evidence In Spain

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  • José Martí Pellón

    (Universidad Complutense de Madrid)

  • Marina Balboa

    (Universidad de Alicante)

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    Abstract

    In the light of the Agency and Signalling Theories, the aim of this paper is to analyse the relationship between investors and private equity managers in order to identify the factors that affect the latter's reputation. Since there are no individual references about their past returns, the reputation of such players is thought to be linked to their capacity for obtaining new funds in countries such as Spain. Two groups of variables that might affect reputation are identified: variables in the first group are linked to the private equity cycle, and those in the second are related to the external image of the operator. The analysis focuses on the activity of almost all private equity investors operating in Spain during 1991-2001. The results show that the lagged volume of investments acts as an indicator of the ability to manage larger amounts of capital. The exogenous characteristics of highest importance are the size of the funds under management and the belonging to the National Private Equity Association. Because of the wide variety of private equity firms, the analysis is completed for diverse groups, which may behave in a different manner. En este artículo se analiza la relación que se origina entre inversores y operadores decapital riesgo dentro del marco de las Teorías de Agencia y de Señales. La finalidad esidentificar los factores que determinan la reputación de estos operadores. Ante la ausenciade referencias individuales de rentabilidad, la reputación puede representar un elementobásico para señalar la capacidad para captar nuevos fondos en países en los que el mercadode capital riesgo está en proceso de maduración. Dos grupos de variables que puedenafectar a la reputación son identificados: uno relacionado con la actividad desarrolladay otro vinculado a aspectos externos. El análisis se centra en la actividad de la prácticatotalidad de operadores de capital riesgo activos en España durante el periodo 1991-2001.Los resultados muestran que el volumen de inversiones registrado en el pasado indica unacapacidad para gestionar una cifra superior de capitales. Las características exógenasde mayor importancia son el tamaño del operador y la pertenencia a la AsociaciónNacional de Capital Riesgo. Dada la gran variedad de operadores existentes en España,el análisis se completa para diferentes subgrupos que podrían comportarse de distintamanera, encontrándose evidencia en este sentido.

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    File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2003-16.pdf
    File Function: Fisrt version / Primera version, 2003
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    Bibliographic Info

    Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2003-16.

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    Length: 32 pages
    Date of creation: Oct 2003
    Date of revision:
    Publication status: Published by Ivie
    Handle: RePEc:ivi:wpasec:2003-16

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    Related research

    Keywords: Captación de fondos; capital riesgo; reputación; Teoría de Agencia y de Señales. Fundraising; private equity; reputation; agency; signalling theory.;

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