Private equity investment criteria : an experimental conjoint analysis of venture capital, business angels, and family offices
- Author
- Joern Block, Christian Fisch, Silvio Vismara (UGent) and René Andres
- Organization
- Abstract
- We use an experimental conjoint analysis to investigate the investment criteria of 749 private equity investors, distinguishing between family offices, business angels, venture capital funds, growth equity funds, and leveraged buyout funds. Our results indicate that revenue growth is the most important investment criterion, followed by the value-added of product/service, the management team's track record, and profitability. Regarding differences across investor types, we find that family offices, growth equity funds, and leveraged buyout funds place a higher value on profitability as compared to business angels and venture capital funds. Venture capital funds, in turn, pay more attention to companies' revenue growth, business models, and current investors. With these results, our study contributes to the corporate finance literature by deepening our understanding of how different types of private equity investors make investment decisions.
- Keywords
- venture capital, business angels, family offices, investment criteria, conjoint analysis, LEVERAGED BUYOUTS, VALUE CREATION, PERFORMANCE, FIRMS, IMPACT, OWNERSHIP, RETURNS, FINANCE, GROWTH, SMART
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Citation
Please use this url to cite or link to this publication: http://hdl.handle.net/1854/LU-8651026
- MLA
- Block, Joern, et al. “Private Equity Investment Criteria : An Experimental Conjoint Analysis of Venture Capital, Business Angels, and Family Offices.” JOURNAL OF CORPORATE FINANCE, vol. 58, 2019, pp. 329–52.
- APA
- Block, J., Fisch, C., Vismara, S., & Andres, R. (2019). Private equity investment criteria : an experimental conjoint analysis of venture capital, business angels, and family offices. JOURNAL OF CORPORATE FINANCE, 58, 329–352.
- Chicago author-date
- Block, Joern, Christian Fisch, Silvio Vismara, and René Andres. 2019. “Private Equity Investment Criteria : An Experimental Conjoint Analysis of Venture Capital, Business Angels, and Family Offices.” JOURNAL OF CORPORATE FINANCE 58: 329–52.
- Chicago author-date (all authors)
- Block, Joern, Christian Fisch, Silvio Vismara, and René Andres. 2019. “Private Equity Investment Criteria : An Experimental Conjoint Analysis of Venture Capital, Business Angels, and Family Offices.” JOURNAL OF CORPORATE FINANCE 58: 329–352.
- Vancouver
- 1.Block J, Fisch C, Vismara S, Andres R. Private equity investment criteria : an experimental conjoint analysis of venture capital, business angels, and family offices. JOURNAL OF CORPORATE FINANCE. 2019;58:329–52.
- IEEE
- [1]J. Block, C. Fisch, S. Vismara, and R. Andres, “Private equity investment criteria : an experimental conjoint analysis of venture capital, business angels, and family offices,” JOURNAL OF CORPORATE FINANCE, vol. 58, pp. 329–352, 2019.
@article{8651026,
abstract = {We use an experimental conjoint analysis to investigate the investment criteria of 749 private equity investors, distinguishing between family offices, business angels, venture capital funds, growth equity funds, and leveraged buyout funds. Our results indicate that revenue growth is the most important investment criterion, followed by the value-added of product/service, the management team's track record, and profitability. Regarding differences across investor types, we find that family offices, growth equity funds, and leveraged buyout funds place a higher value on profitability as compared to business angels and venture capital funds. Venture capital funds, in turn, pay more attention to companies' revenue growth, business models, and current investors. With these results, our study contributes to the corporate finance literature by deepening our understanding of how different types of private equity investors make investment decisions.},
author = {Block, Joern and Fisch, Christian and Vismara, Silvio and Andres, René},
issn = {0929-1199},
journal = {JOURNAL OF CORPORATE FINANCE},
keywords = {venture capital,business angels,family offices,investment criteria,conjoint analysis,LEVERAGED BUYOUTS,VALUE CREATION,PERFORMANCE,FIRMS,IMPACT,OWNERSHIP,RETURNS,FINANCE,GROWTH,SMART},
language = {eng},
pages = {329--352},
title = {Private equity investment criteria : an experimental conjoint analysis of venture capital, business angels, and family offices},
url = {http://dx.doi.org/10.1016/j.jcorpfin.2019.05.009},
volume = {58},
year = {2019},
}
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