Earnings Quality of Private Equity-Backed andNon-Private Equity-Backed Firms in India

Prediction of Equity Values for Venture Capital Backed Firms

This study investigates the predictability of firm values for venture capital-backed firms. Having insights into the internal documents of more than 300 venture capitalists, we derive three common categories of firm value drivers: team characteristics, firm and market characteristics, and accounting information. Based on these value drivers, we provide a regression based valuation approach, whi...

Investing in Private Equity

Can private equity deliver on equity?

a Save the Children UK, 1 St John’s Lane, London, EC1M 4AR, England. Correspondence to Giorgio Cometto (e-mail: [email protected]). In June 2009, a new Health in Africa Fund was launched by the International Finance Corporation (IFC), the branch of The World Bank group mandated with supporting and expanding the private for-profit sector. This Fund will be managed by Aureos Capital, a p...

Valuing private equity∗

To understand the pricing and performance of private equity (PE), we analyze the incomplete-markets portfolio choice problem facing a risk-averse limited partner (LP) investing in liquid stocks and bonds along with an illiquid PE investment. A general partner (GP) manages the PE asset and generates alpha on it and charges management and performance fees via carried interest in return. Our compl...

Do Private Equity Owned Firms Have Better Management Practices?

We use an innovative survey tool to collect management practice data from over 4,000 medium sized manufacturing firms across Asia, Europe and the US. These measures of managerial practice are strongly associated with firm-level performance (e.g. productivity, profitability and stock market value). Private equity firms are significantly better managed than government, family and privately owned ...