Investors in Private Equity Funds: Theory, Preferences and Performances

ISBN-13: 9783834921833 / Angielski / Miękka / 2010 / 199 str.

Daniel Hobohm

Opis

As the world emerges from one of the biggest ?nancial crises in history, the list of causative factors for the global bubble that preceded it becomes clear. A lack of transparency in the investment markets, a rush to illiquid assets and a glori?cation of aggressive investment strategies are some of those factors. If we can learn anything from the crisis, it de?nitely includes that many of the largest and most important investors knew too little about how to deal with investments outside the classic, public stock markets. Indeed, investments in illiquid Private Equity (PE) and Venture Capital (VC) funds have played a signi?cant role in many seemingly low-risk, high-return investment strategies, even though investors in these funds had few guidelines from academics or regulators on how to treat this asset class. This is unfortunate, not only because these funds play a crucial role in the ?nancing of non-public companies - e.g. the essential ?nancing of many in- vative start-up ?rms or the capital investments in so many non-public medi- sized companies. The lack of analysis is also regrettable, since economically important investors, e.g. pension funds or insurances, seek to diversify their investments. But only few studies have empirically analyzed how investors choose and invest in PE and VC funds. Daniel Hobohm helps to ?ll this - search gap with his doctoral thesis.

Spis treści

Investment Preferences ; Home Bias; Strategy Adjustments by Endowments; Investment Performances; Drivers of Investment Success; The Significance of Geographic Proximity

O autorze

Dr. Daniel Hobohm obtained his doctorate at the Institute for Innovation Research, Technology Management and Entrepreneurship (Ludwig-Maximilians-Universität Munich) under the supervision of Prof. Dietmar Harhoff, Ph.D. He works in the alternative investment industry.

Blurb

Daniel Hobohm analyses more than 17 000 investments by more than 1800 international investors in more than 2400 private equity and venture capital funds over the last two decades. He compares different investor types in their fund preferences, home bias and investor responses to market shocks. Further, he determines returns by investor type and the effect of external advisors on fund investment returns. The author analyses the role of risk-taking when choosing VC funds and, in a unique investigation, the role of the proximity of the investor to the fund. His analysis sheds light on the intransparent private equity market and highlights the significance of the close investor-fund interaction for investment success.