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Limited partners' perceptions of the Central Eastern European venture capital and private equity market

  • Groh, Alexander P.

    (Montpellier Business School)

  • Liechtenstein, Heinrich

    ()

    (IESE Business School)

  • Canela, Miguel A.

    (University of Barcelona)

Registered author(s):

    Growth expectations and institutional settings in Central Eastern Europe are assumed to be favorable for the establishment of a vibrant Venture Capital and Private Equity market. Despite this, there is a lack of risk capital. We examine the obstacles to institutional investments in the region through a questionnaire addressed to (potential) Limited Partners world-wide. The respondents provide information about their perceptions of the region. The protection of property rights is the dominant concern, followed by social criteria, such as the belief in the management quality of local people, and the lacking size and liquidity of the Central Eastern European capital markets. However, Limited Partners regard the growth expectations as attractive, and those with exposure in Central Eastern Europe are satisfied with the historical risk and return ratio, they have a good knowledge of the region, are attracted by other emerging regions, and they appreciate the region's entrepreneurial opportunities and the local General Partners. Overall, the region is ranked very favorable compared to other emerging regions, and especially with respect to its economic and entrepreneurial activity.

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    Paper provided by IESE Business School in its series IESE Research Papers with number D/727.

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    Length: 33 pages
    Date of creation: 13 Jan 2008
    Date of revision:
    Handle: RePEc:ebg:iesewp:d-0727
    Contact details of provider: Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
    Web page: http://www.iese.edu/

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