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Determinants Of Private Equity Fundraising In Western Europe

Author

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  • José Martí Pellón

    (Universidad Complutense de Madrid)

  • Marina Balboa

    (Universidad de Alicante)

Abstract

The aim of this paper is to identify the key factors that lie behind venture capital/private equity fundraising in countries where there is scarce and asymmetric information about final returns. The main contribution of this paper is to explain fundraising by means of variables directly related to the venture capital process rather than by macroeconomic ones. We use panel data techniques on data from 16 European countries during the nineties. In the light of the long period required for investing committed capital and the illiquid nature of investments until the fund is divested, the focus is placed on the investing capabilities of fund managers. We find that the amounts invested in the previous year have a positive and significant impact on fundraising. In this sense, the market would be regarding the ability of fund managers to invest the total amounts investors have previously committed.

Suggested Citation

  • José Martí Pellón & Marina Balboa, 2001. "Determinants Of Private Equity Fundraising In Western Europe," Working Papers. Serie AD 2001-15, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2001-15
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    References listed on IDEAS

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    Cited by:

    1. Elisabete Félix & Cesaltina Pires & Mohamed Gulamhussen, 2013. "The Determinants of Venture Capital in Europe — Evidence Across Countries," Journal of Financial Services Research, Springer;Western Finance Association, vol. 44(3), pages 259-279, December.
    2. Francesco Bogliacino & Matteo Lucchese, 2011. "Access to finance for innovation: the role of venture capital and the stock market," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2011(4), pages 165-183.
    3. Mohammad Mustafa & Syed Shahid Mazhar, 2021. "Commitment to capital raising for venture capital funds in India: An Application of ARDL Model," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 13(2), pages 121-133, December.
    4. van Pottelsberghe de la Potterie, Bruno & Romain, Astrid, 2004. "The Determinants of Venture Capital: Additional Evidence," Discussion Paper Series 1: Economic Studies 2004,19, Deutsche Bundesbank.
    5. Johannes Wallmeroth & Peter Wirtz & Alexander Peter Groh, 2017. "Institutional Seed Financing, Angel Financing, and Crowdfunding of Entrepreneurial Ventures: A Literature Review," Working Papers hal-01527999, HAL.
    6. Groh, Alexander Peter & Wallmeroth, Johannes, 2016. "Determinants of venture capital investments in emerging markets," Emerging Markets Review, Elsevier, vol. 29(C), pages 104-132.
    7. Romain, Astrid & Pottelsberghe de la Potterie, Bruno van, 2003. "The Determinants of Venture Capital: A Panel Data Analysis of 16 OECD Countries," IIR Working Paper 03-25, Institute of Innovation Research, Hitotsubashi University.
    8. Mohammad Mustafa & Syed Shahid Mazhar, 2020. "Determinants of Venture Capital Investment in India: A Time Series Analysis," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 12(1), pages 19-30, June.
    9. Olabanji Oni, 2017. "Determinants of Venture Capital Supply in Sub-Saharan Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 9(4), pages 87-97.

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