Journal articles: 'Private investment public equity'

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Couch, Robert, and Wei Wu. "Private investment and public equity returns." Journal of Economics and Business 64, no. 2 (March 2012): 160–84. http://dx.doi.org/10.1016/j.jeconbus.2011.10.001.

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Badertscher, Brad A., Devin M. Shanthikumar, and Siew Hong Teoh. "Private Firm Investment and Public Peer Misvaluation." Accounting Review 94, no. 6 (January 1, 2019): 31–60. http://dx.doi.org/10.2308/accr-52369.

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ABSTRACT We study how public firm misvaluation affects private peer firm investments. An economic competition hypothesis predicts a negative relation because misvaluation-induced new investment by public firms crowds out investment by private peers that share common input or output markets. An alternative shared sentiment hypothesis predicts a positive relation because private firm stakeholders share in the sentiment associated with misvaluation in public markets. Misvaluation is proxied using both the price-to-fundamental ratio and an exogenous instrument obtained from mutual fund flows. The evidence is consistent with the shared sentiment hypothesis, and robust to alternative treatments for growth opportunities. Private firms finance misvaluation-induced investment primarily internally or externally with debt, not equity. Finally, misvaluation-induced investment increases future return on investment for private firms, in contrast with public firms. Overall, these findings suggest that overvaluation in public markets increases private firm investments and has beneficial effects on private firm investments by relaxing financing constraints. JEL Classifications: G32; M41. Data Availability: Data are available from sources identified in the paper.

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Schwienbacher, Armin. "International capital flows into private equity funds." Maandblad Voor Accountancy en Bedrijfseconomie 81, no. 7/8 (July 1, 2007): 335–43. http://dx.doi.org/10.5117/mab.81.20839.

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In this study the investment behavior of US institutional investors in selecting private equity funds isanalyzed. The results show that, while this group of investors predominantly selected US funds, their interest in directly investing in foreign funds has increased over time. Insurance companies, financial corporations (banks), and public pension funds in the US are ‘global players’ that are likely to invest directly in foreign private equity funds. This conclusion holds for investments in European funds as well as for investments in Asia. More experienced funds providers are more likely to invest abroad, and when doing so they are more likely to invest in venture capital funds as opposed to buyout funds.

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Johan, Sofia A., April Knill, and Nathan Mauck. "Determinants of sovereign wealth fund investment in private equity vs public equity." Journal of International Business Studies 44, no. 2 (February 2013): 155–72. http://dx.doi.org/10.1057/jibs.2013.1.

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Gwon, Jae Hyun. "Problems of Private Equity Placements in South Korea and Suggestions for Amendable Measures." Korean Journal of Financial Studies 50, no. 2 (April 30, 2021): 171–200. http://dx.doi.org/10.26845/kjfs.2021.04.50.2.171.

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In the context of the protection of individual investors of private investment funds in South Korea, this study examines the current regulation of private placements from legal and economic perspectives. It compares Rule 506 of Regulation D in the United States with the similar regulation of South Korea. The most distinguishing feature of South Korea’s regulation is that any individual who can evidence a certain investment amount, regardless of accreditation or sophistication, is eligible to participate in private equity funds, which has recently resulted in “incomplete sales” problems in Korea. To conform to the definition of private equity, it is best to abolish the threshold criteria of minimum investment amount. Otherwise, the “sales” of private equity via commercial banks and central institutions for financial stability must at least be banned so that individual investors do not confuse private placement with public offering. In return, public advertisement can be permitted for private equity funds with only accredited investors and sophisticated investors. Public fund investment in private equities are de facto private equities; they are inappropriate for individuals, who may be confused with private funds and public funds. As such, they need to be limited.

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Moskowitz, Tobias J., and Annette Vissing-Jørgensen. "The Returns to Entrepreneurial Investment: A Private Equity Premium Puzzle?" American Economic Review 92, no. 4 (August 1, 2002): 745–78. http://dx.doi.org/10.1257/00028280260344452.

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We document the return to investing in U.S. nonpublicly traded equity. Entrepreneurial investment is extremely concentrated, yet despite its poor diversification, we find that the returns to private equity are no higher than the returns to public equity. Given the large public equity premium, it is puzzling why households willingly invest substantial amounts in a single privately held firm with a seemingly far worse risk-return trade-off. We briefly discuss how large nonpecuniary benefits, a preference for skewness, or overestimates of the probability of survival could potentially explain investment in private equity despite these findings.

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Huang, Rongbing, Zhaoyun Shangguan, and Donghang Zhang. "The networking function of investment banks: Evidence from private investments in public equity." Journal of Corporate Finance 14, no. 5 (December 2008): 738–52. http://dx.doi.org/10.1016/j.jcorpfin.2008.09.014.

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Khatri, Palash, and V. R. Sudindra. "Private Equity and Venture Capital – Preamble." Shanlax International Journal of Management 8, S1-Feb (February 26, 2021): 133–37. http://dx.doi.org/10.34293/management.v8is1-feb.3766.

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Private equity investment can offer very strong returns in comparison to any stock market returns or public market investment opportunity.Private equity invests in companies which are not listed in the recognized stock exchange. Every business comes across six stages of the life cycle which include; Development, Start-up, early-stage growth, expansion, maturity, and decline/crisis stage. PE firms invest in the initial three stages. In today’s fast-moving world with technological changes very great business plan may hit by various events and successes of companies. Private equity not only invests in companies, but they also provide management support and assist in the overall success of companies. The present study discussed on Birth of US Private equity, Indian Private Equity major players, steps in venture capital funding.

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Mortal, Sandra, and Natalia Reisel. "Capital Allocation by Public and Private Firms." Journal of Financial and Quantitative Analysis 48, no. 1 (February 2013): 77–103. http://dx.doi.org/10.1017/s0022109013000057.

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AbstractWe compare investment policies across public and private firms in different institutional settings. Using a large cross-country data set, we find that public listed firms are better positioned to take advantage of growth opportunities than private firms. Specifically, public listed firms exhibit higher investment sensitivity to growth opportunities than private firms. This differential, however, only exists in countries with well-developed stock markets. Furthermore, the relative advantage public firms have at allocating capital depends on the degree of agency costs and reliance on external equity.

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Huerta, Daniel, and Mark Pyles. "A dual portfolio approach to a student managed fund." Managerial Finance 46, no. 5 (February 27, 2019): 675–84. http://dx.doi.org/10.1108/mf-08-2018-0394.

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Purpose The purpose of this paper is to describe an investment program that offers students with the opportunity to simultaneously manage a private asset fund and a public asset fund. The program has been in operation since 2013 and has made significant progress in student placement and connectivity with local, regional and national financial firms. Design/methodology/approach The authors describe the structure, methods used and challenges encountered in this dual portfolio environment and add relevant thoughts for discussion. The authors discuss potential conflicts of interests that may arise in managing a private equity portfolio, the concern of proper deal flow, the issue of the investment timeline when investing in private equity and the problems encountered when measuring private equity performance. Findings While public asset funds have been around for decades and are relatively well accepted throughout all levels and types of higher education institutions. The uses of private equity funds, though not unheard of, are much less prevalent. Allowing the same group of students to manage both type of portfolios is relatively unique and provides with a more comprehensive learning experience. Originality/value A primary distinguishing attribute of this program is that accepted students are given the opportunity to simultaneously manage both public and private equity assets throughout an academic year. The goal is to create a comprehensive portfolio management program that replicates a changing investment management environment where private equity is an increasingly significant asset class.

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Gao, Huasheng, Po-Hsuan Hsu, and Kai Li. "Innovation Strategy of Private Firms." Journal of Financial and Quantitative Analysis 53, no. 1 (December 28, 2017): 1–32. http://dx.doi.org/10.1017/s0022109017001119.

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We compare innovation strategies of public and private firms based on a large sample over the period 1997–2008. We find that public firms’ patents rely more on existing knowledge, are more exploitative, and are less likely in new technology classes, while private firms’ patents are broader in scope and more exploratory. We investigate whether these strategies are due to differences in firm information environments, CEO risk preferences, firm life cycles, corporate acquisition policies, or investment horizons between these two groups of firms. Our evidence suggests that the shorter investment horizon associated with public equity markets is a key explanatory factor.

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Peng, Jun, and Qiushi Wang. "Alternative investments: is it a solution to the funding shortage of US public pension plans?" Journal of Pension Economics and Finance 19, no. 4 (April 23, 2019): 491–510. http://dx.doi.org/10.1017/s147474721900012x.

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AbstractSince 2001, public-pension plans have increasingly relied upon alternative investments (AIs). We examine the impact of this trend on investment performance and the factors that led to the reliance on AI. Using data from 92 largest plans 2001–2014, we found AI, especially private equity, generally had a positive effect on investment performance, but the effect was small and unsustainable. We also found that plans with a lower funded ratio and higher investment return expectation were more likely to allocate more assets to AIs. These findings suggest that the prospect of relying on AIs to meet investment return expectations remains a long-term challenge for state and local governments.

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Kartashova, Katya. "Private Equity Premium Puzzle Revisited." American Economic Review 104, no. 10 (October 1, 2014): 3297–334. http://dx.doi.org/10.1257/aer.104.10.3297.

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This paper revisits the results of Moskowitz and Vissing-Jørgensen (2002) on returns to entrepreneurial investments in the United States. Following the authors' methodology and new data from the Survey of Consumer Finances, I find that the “private equity premium puzzle” does not survive the period of high public equity returns in the 1990s. The difference between private and public equity returns is positive and large period-by-period between 1999 and 2007. Whereas in the 2008–2010 period, overlapping with the Great Recession, public and private equities performances are substantially closer. I validate these results in the aggregate data going back to the 1960s. (JEL G11, G12, L26)

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Shin, Jiyeon, and Wonseok Woo. "An Analysis of Private Equity Funds in Korea and Their Role in the Korean Economy in the Post-Crisis Period." International Studies Review 9, no. 1 (October 8, 2008): 47–73. http://dx.doi.org/10.1163/2667078x-00901003.

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This paper aims to argue that private equity funds play a critical role in the Korean economy and that their presence, now and in the future is essential. Moreover, domestic private equity funds will be complementary to foreign private equity funds, not a substitute, at lease for the time being. In arguing so, we will look into the investment experiences of foreign private equity funds and see how foreign private equity funds have helped transform the economy in the pose-financial crisis era. We will also look at the domestic private equity funds market co examine the replicability of private equity-driven growth in Korea. The paper will conclude with further recommendations for the growth of the private equity market. In the past five years or so, Koreans have come to be familiar with names such as Carlyle, Newbridge Capital, Lone Star, etc. These are the names of major foreign institutional investment firms that bought out the Korean domestic banks, Koram Bank, Korea First Bank, and Korea Exchange Bank. Recently, with the incident of the Lone Star scandal disclosed in regards to its acquisition of Korea First Bank, the Korean media have given extensive coverage co the issues relating to private equity funds. Especially after the scandals involving foreign investors, there is public discontent about the large volume of foreign private equity funds, mainly in the financial sector, that seem to ‘eat and run’ once increased profits have been made. People have scrutinized investments of this kind with critical eyes. Nevertheless, we should acknowledge the contributions that the foreign private equity funds have played in various sectors of the economy in the pose-crisis period. Foreign funds have invested in troubled Korean firms, understanding any risks involved, and successfully turned them around for the better. To chat end, even if domestic private equity funds that have been set up since 2004 have not yet performed co the market expectation, we have to understand chat they have further roles to play as we anticipate growth of the M&A market in the coming years.

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Mavlioutov, Ramil R., Elena V. Egorova, and Olga Yu Pakhomova. "Financial Maintenance of Building of Affordable Housing on the Basis of Public-Private Partnership." Materials Science Forum 931 (September 2018): 1107–12. http://dx.doi.org/10.4028/www.scientific.net/msf.931.1107.

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In Russia, there is a decrease in investment activity from the citizens in the primary real estate market, where until recently the main engine was equity construction. The last one, objectively, has lost the ability to satisfy the interests of participants in the investment process. In 2017 the legislator made an attempt to adjust the economic and legal field of housing construction. The article considers the issue of viability of equity construction in new economic conditions. Alternative solutions are considered and the author's vision of the mechanism of financing housing construction on the basis of public-private partnership which provides the supply in the primary market of affordable housing is presented.

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Van Niekerk, J. R., and J. D. Krige. "Analysis of sources of return in South African private equity." South African Journal of Business Management 40, no. 4 (December 31, 2009): 1–12. http://dx.doi.org/10.4102/sajbm.v40i4.546.

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Private Equity is rapidly growing as an asset class for investors in South Africa. Local and international literature presents overwhelming evidence to suggest that Private Equity offers superior risk-adjusted returns and portfolio diversification benefits.This study addresses the question of how exactly Private Equity managers are able to achieve superior returns. A sample of 46 individual completed investments representing large buy-outs in South Africa in the period 1992 to 2007 was selected and analysed to quantitatively investigate the relationship between some of the identified sources of return and the realised internal rates of return in the case of each investment. These relationships were not found to be as strong as expected and in many cases were not supportive of the findings in the literature. Only earnings growth and an increase in the earnings multiple had a significant impact on the internal rates of return achieved according to the sample analysed.The authors conclude that investing in Private Equity is too interdisciplinary to distil the sources of return into a few concise elements. Proprietary knowledge, expertise, superior management skills, relationships and experience all seem to play a role in providing Private Equity managers with a competitive edge over their public market participants.

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Andriosopoulos, Dimitris, and Styliani Panetsidou. "A global analysis of Private Investments in Public Equity." Journal of Corporate Finance 69 (August 2021): 101832. http://dx.doi.org/10.1016/j.jcorpfin.2020.101832.

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Nisbet, Elizabeth, and Susanna Schaller. "Philanthropic Partnerships in the Just City: Parks and Schools." Urban Affairs Review 56, no. 6 (May 3, 2019): 1811–47. http://dx.doi.org/10.1177/1078087419843186.

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The role of private funding and management in U.S. urban public services has expanded through the auspices of private nonprofit organizations in formal relationships with government and aided by large gifts from wealthy donors with visions for their cities, leading scholars to raise concerns about potential harm to democratic governance and displacement of public investment. Where do these private efforts fit into current policy initiatives to improve equity in schools and parks? Employing Susan Fainstein’s Just City framework, this article analyzes cases in which policy actors sought constraints on private dollars in an attempt to institutionalize equity into public private partnership (PPP) regimes. The Portland, Oregon, school board required that school foundations share funds with a districtwide foundation for reallocation. In New York City, unsuccessful state legislation proposed reallocating private funds but executive action redirected public city funds, and largely nonmonetary private resources. These cases can inform policymakers striving for just cities.

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Fagnan, David E., Jose Maria Fernandez, Andrew W. Lo, and Roger M. Stein. "Can Financial Engineering Cure Cancer?" American Economic Review 103, no. 3 (May 1, 2013): 406–11. http://dx.doi.org/10.1257/aer.103.3.406.

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Traditional financing sources such as private and public equity may not be ideal for investment projects with low probabilities of success, long time horizons, and large capital requirements. Nevertheless, such projects, if not too highly correlated, may yield attractive risk-adjusted returns when combined into a single portfolio. Such “megafund” portfolios may be too large to finance through private or public equity alone. But with sufficient diversification and risk analytics, debt financing via securitization may be feasible. Credit enhancements (i.e., derivatives and government guarantees) can also improve megafund economics. We present an analytical framework and illustrative empirical examples involving cancer research.

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Precup, Mihai. "What Drives Private Equity Investments in Romania?" Studia Universitatis „Vasile Goldis” Arad – Economics Series 25, no. 4 (November 1, 2015): 25–42. http://dx.doi.org/10.1515/sues-2015-0025.

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Abstract This paper aims at presenting the determinants of private equity investments in Romania over the period 2000 - 2013. Additionally, this paper presents the main highlights in terms of evolution, source of funding and activities in which the private equity funds invested during the crisis. Starting from the existing literature, this paper extends the analysis of private equity drivers to Romanian market by including variables such as: economic growth, market capitalization, interest rate, unemployment rate and public R&D expenditure which were already tested in previous papers. In addition, this paper introduces new variables such us productivity and corruption index which we consider important factors in explaining the evolution of private equity investments in Romania. The results of our empirical model confirmed existing hypothesis regarding the importance of some determinants such as: unemployment rate, economic growth, market capitalization and corruption. Based on our empirical results, we have pointed several strategic directions that are meant to support the development of the private equity market in Romania. Keywords: private equity; economic growth; market capitalization; unemployment rate; corruption; private equity determinants; Romania.

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Dai, Na. "Monitoring via staging: Evidence from Private investments in public equity." Journal of Banking & Finance 35, no. 12 (December 2011): 3417–31. http://dx.doi.org/10.1016/j.jbankfin.2011.05.022.

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Raychaudhuri, Ajitava, and Poulomi Roy. "The Optimal Distribution Rule of Federal Funds to States in India: A Suggested Methodology." South Asian Journal of Macroeconomics and Public Finance 10, no. 2 (March 4, 2021): 193–225. http://dx.doi.org/10.1177/2277978721989921.

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A federal country like India distributes centrally collected funds through certain distribution rules, framed by the finance commission every five years, which primarily aims at horizontal equity among the states, although the goal of vertical equity has also been accommodated lately. The distribution rules do change, but they are largely governed by population and taxable capacity in a static sense. As a result, this brings some horizontal equity in the stated time frame but misses the root cause of inequity among states. This highlights the importance of the dynamics of growth of per capita income of the states which depends on public capital formation since private investment is complementary to public investment. This also raises the issue of time preference along with the attitude towards inequality aversion on the part of individuals in different states in India, which determines the savings that set the limits to private capital formation. This helps one to estimate the optimal value of public capital in a state which would ensure certain predetermined growth target along with inclusivity. If the finance commission could accommodate in its distribution rule the development gap of each state in terms of actual and optimal public capital as mentioned, the horizontal as well as vertical equity can be pursued in a sustainable manner since this addresses both inequity among and within states over time.

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KUT, CAN, and JAN SMOLARSKI. "RISK MANAGEMENT IN PRIVATE EQUITY FUNDS: A COMPARATIVE STUDY OF INDIAN AND FRANCO-GERMAN FUNDS." Journal of Developmental Entrepreneurship 11, no. 01 (March 2006): 35–55. http://dx.doi.org/10.1142/s1084946706000258.

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Venture capitalist and buy-out funds are often considered experts at investing in high-risk projects and companies. To be successful investors, private equity funds must therefore manage the many aspects of risk that are associated with investing in non-public enterprises. This study examines how Indian private equity funds manage several dimensions of risk in comparison to non-Anglo-Saxon funds. We analyze risk management preferences in Indian and Franco-German funds in pre- and post-investment stages. The results, which are discussed in detail, show significant differences between the two groups.

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Du, Jing, Hongyue Wu, and Ruoyu Jin. "Capital Structure of Public–Private Partnership Projects: A Sustainability Perspective." Sustainability 11, no. 13 (June 26, 2019): 3505. http://dx.doi.org/10.3390/su11133505.

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Capital is key to achieve the standardized operation of public–private partnership (PPP) projects. The capital structure of PPP projects stresses the structure of equity and debt funds, which are important for securing life-cycle ample funds and achieving the expected outcomes of projects. By incorporating sustainability into PPP projects, the capital structure not only secures current needs of funds, it also focuses on life-cycle stable operations and achieves economic, social, and environmental benefits. This study first set the equity–debt ratio and equity investment ratio of the private sector as the dependent variables and built a selection model of the capital structure of PPP projects from a sustainability perspective using the benefit, cost, and project conditions as core factors based on multi-objective programming and a discounted cash-flow model. Then, the qualitative analysis could be achieved according to the analysis of critical factors that had not been calculated. Afterwards, a selection process which combined the multi-objective programming model with qualitative analysis was proposed to achieve a comprehensive selection of the capital structure of PPP projects from the sustainability perspective. Finally, the process was applied to a real project to verify its rationality and usability. This study not only enriches the theoretical research of PPP projects and provides a new idea on which to build the capital structure selection model, it also proposes a selection process that can provide scientific references for the selection and optimization of the capital structure of PPP projects in practice.

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Bruton, Garry D., Salim Chahine, and Igor Filatotchev. "Founders, Private Equity Investors, and Underpricing in Entrepreneurial IPOs." Entrepreneurship Theory and Practice 33, no. 4 (July 2009): 909–28. http://dx.doi.org/10.1111/j.1540-6520.2009.00309.x.

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One of the most important events in the life of an entrepreneurial firm is when it undergoes an initial public offering (IPO). Combining signaling theory with research on the role of information asymmetry in pricing of IPOs this study examines the performance outcomes of two distinct types of agency conflicts at the time of the IPO: adverse selection and moral hazard. Empirical results show a curvilinear (U–shaped) relationship between founders‘ retained equity and underpricing. This suggests that founders‘ retained ownership in an entrepreneurial IPO limits adverse selection problems and the associated IPO underpricing; however, at some point entrepreneurs‘ investment and risk become so great that entrepreneurs may no longer act rationally and moral hazard increases. Empirical findings also indicate that the retained ownership of business angels has a stronger mitigating effect on adverse selection and moral hazard problems than do venture capitalist investors.

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Shin, Minshik, and Sooeun Kim. "The Effects of Private Investments in Public Equity on R&D Investment in Small and Medium-Size Enterprises." Emerging Markets Finance and Trade 50, sup2 (March 2014): 43–59. http://dx.doi.org/10.2753/ree1540-496x5002s203.

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Barraclough, Simon. "The Growth of Corporate Private Hospitals in Malaysia: Policy Contradictions in Health System Pluralism." International Journal of Health Services 27, no. 4 (October 1997): 643–59. http://dx.doi.org/10.2190/ntft-qrby-6vaj-fmm9.

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The rapid growth of corporate investment in the Malaysian private hospital sector has had a considerable impact on the health care system. Sustained economic growth, the development of new urban areas, an enlarged middle class, and the inclusion of hospital insurance in salary packages have all contributed to a financially lucrative investment environment for hospital entrepreneurs. Many of Malaysia's most technologically advanced hospitals employing leading specialists are owned and operated as corporate business ventures. Corporate hospital investment has been actively encouraged by the government, which regards an expanded private sector as a vital complement to the public hospital system. Yet this rapid growth of corporately owned private hospitals has posed serious contradictions for health care policy in terms of issues such as equity, cost and quality, the effect on the wider health system, and the very role of the state in health care provision. This article describes the growth of corporate investment in Malaysia's private hospital sector and explores some of the attendant policy contradictions.

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Zasępa, Piotr. "Cycle on the Warsaw Stock Exchange and the level of underpricing of venture capital and private equity funds over 2000-2013." Zeszyty Naukowe Wyższej Szkoły Humanitas Zarządzanie 18, no. 1 (May 30, 2017): 0. http://dx.doi.org/10.5604/01.3001.0010.2894.

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Investments of venture capital and private equity funds are made in young fast growing companies whose founders are characterized by a lack of capital for their development. Fund investment cycle is assumed to follow the process of divestment after a period of rapid growth and dynamic growth of the company. One of the methods used willingly completion of the investment by the funds is to put the company on the stock exchange. It is quite a long and expensive process, however, that the valuation of the fund may obtain a public market is often the highest possible. The process has, however, affected by the condition of the public market and current trends in the market for initial public offering. This is also reflected in the so-called underpricing of the offer or the difference between the opening and closing of the first day of trading of the company. This article aims to analyze the impact of trends on the stock exchange on the level of underestimation of the value of the transaction IPO on the Warsaw Stock Exchange in the period 2000-2013.

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Huang, Rongbing, Jay R. Ritter, and Donghang Zhang. "Private Equity Firms’ Reputational Concerns and the Costs of Debt Financing." Journal of Financial and Quantitative Analysis 51, no. 1 (February 2016): 29–54. http://dx.doi.org/10.1017/s0022109016000053.

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AbstractA popular view is that private equity (PE) firms tend to expropriate other stakeholders of their portfolio companies. Bonds offered during 1992–2011 by companies after their initial public offerings (IPOs) do not reflect this view. We find that yield spreads on bonds offered by PE-backed companies are, on average, 70 basis points lower, holding other things constant. We also find that PE-backed companies have more conservative investment and dividend policies after bond offerings compared with non-PE-backed companies. These results suggest that PE firms’ reputational concerns dominate their wealth expropriation incentives and help their portfolio companies reduce the costs of debt.

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Owusu-Manu, De-Graft, David John Edwards, E. K. Kutin-Mensah, Angela Kilby, Erika Parn, and Peter Edward Love. "The impact of socio-political and economic environments on private sector participation in energy infrastructure delivery in Ghana." Journal of Engineering, Design and Technology 15, no. 2 (April 3, 2017): 166–80. http://dx.doi.org/10.1108/jedt-02-2016-0007.

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Purpose Investment in power and electricity generation for replacing aging infrastructure with new represents a major challenge for developing countries. This paper therefore aims to examine infrastructure projects’ characteristics and how socio-political and economic investment environments interplay to influence the degree of private sector participation (PPP) in infrastructure delivery in Ghana. Design/methodology/approach Using World Bank Public-private infrastructure advisory facility (PPIAF) and private participation in infrastructure (PPI) project database data from 1994 to 2013, binary logistic regression was used to: determine the probability of a higher or lower degree of PPP; and examine the significance of factors that are determinants of private investments. Findings The findings reveal that the private sector is more likely to invest in a higher degree of PPP infrastructure projects through greenfield and concession vehicles as opposed to management and leasing contracts. From the extant literature, drivers of PPP included infrastructure project characteristics and the social–economic–political health of the host country. However, the significance, direction and magnitude of these drivers vary. Originality/value This paper identifies investment drivers to PPP advisors and project managers and seeks to engender discussion among government policymakers responsible for promoting and managing PPP projects. Direction for future work seeks to explore competitive routes to infrastructure debt and equity finance options that finance energy projects.

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Chen, Sheng-Syan, Ching-Yu Hsu, and Chia-Wei Huang. "The white squire defense: Evidence from private investments in public equity." Journal of Banking & Finance 64 (March 2016): 16–35. http://dx.doi.org/10.1016/j.jbankfin.2015.11.017.

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Vasudevan, Vinod, Nitish Goenka, and Michael Garvin. "Pathways to project delivery success and failure in Indian road public–private partnership projects." Journal of Infrastructure, Policy and Development 2, no. 2 (November 4, 2018): 1. http://dx.doi.org/10.24294/jipd.v2i2.156.

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This study examines conditions that impact PPP delivery success or failure in the roadways sector in India using Qualitative Comparative Analysis. QCA is well-suited for problems where multiple factors combine to create pathways leading to an outcome. Past investigations have compared PPP and non-PPP project delivery performance, but this study examines performance within PPPs by uncovering a set of conditions that combine to influence the success or failure road PPP project delivery in India. Based on data from 21 cases, pathways explaining project delivery success or failure were identified. Specifically, PPPs with high concessionaire equity investment and low regional industrial activity led to project delivery success. Projects with lower concessionaire equity investment and low reliance on toll revenue and with either: (a) high project technical complexity or (b) high regional industrial activity, led to project delivery failure. The pathways identified did not have coverage values that they were extremely strong. Coverage strength was hindered by lack of access to information on additional conditions that could be configurationally important. Further, certain characteristics of the Indian market limit generalization. Identification of combinations of conditions leading to PPP project delivery success or failure improves knowledge of the impacts of structure and characteristics of these complex arrangements. This study is one of the first to use fuzzy QCA to understand project delivery success/failure in road PPP projects. Moreover, this study takes into account factors specific to a sector and delivery mode to explain project delivery performance.

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Grafenauer, Božo, and Mirko Klarić. "Alternative Service Delivery Arrangements at the Municipal Level in Slovenia and Croatia." Lex localis - Journal of Local Self-Government 9, no. 1 (January 24, 2011): 67–83. http://dx.doi.org/10.4335/9.1.67-83(2011).

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There has been extensive development and rapid expansion of alternative forms of public service provision at the local level in Slovenia and Croatia over the last twenty years. During that time, the private sector began to be intensively involved in performing public service activities and in investment financing for the public infrastructure construction, i.e., by the gradual introduction of the new forms of cooperation between the public and private sectors. However, the new Public-Private Partnership Act, which came into force in Slovenia in 2007 and in Croatia in 2008, signified a milestone in the legal regulation of alternative forms of public service delivery. The Act introduces European comparable arrangements and forms of public-private partnerships that can be either contractual or equity-based. Within public services, local public goods and services are mostly provided by public enterprises and institutions, and by awarding public service concessions. Other forms of public-private partnerships primarily include some forms of build-operate-transfer project financing. KEYWORDS: • local authorities • local self-government • local public services • public-private partnerships • concession • Slovenia • Croatia

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Biryukov, E. S. "INVESTMENT STRATEGIES OF INSTITUTIONAL INVESTORS: SOVEREIGN WEALTH FUNDS VS ENDOWMENTS." MGIMO Review of International Relations, no. 6(33) (December 28, 2013): 117–26. http://dx.doi.org/10.24833/2071-8160-2013-6-33-117-126.

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The paper considers two main original approaches to investing the assets of institutional investors (the total amount of their assets in the world is about 100 trillion dollars) – the one of Norway's sovereign wealth fund Global and approach of Yale's endowment fund. Fund Global with assets of $ 716 billion dollars is the largest institutional investor in the world, its strategy is based on the assumption that markets are efficient and their long-term growth lies in the balance of investment in stocks , bonds, and , since more recent time - in real estate. Financiers of Yale in the 1990s revolutionized the approach to investment, firstly, by reducing the proportion of stocks and bonds in favor of private equity and real estate, and secondly , by shift from investments in the domestic market to foreign markets. Not all institutional investors are ready to follow these strategies because of the risk of negative returns in times of crises, but in the medium- and long-term, these approaches allow to beat inflation. For example, Yale's endowment has grown since 1985 to 2012 from 1.6 to 19 billion dollars, and high yield allows to transmit 1 billion dollars (!) to the budget of the university annually. Endowment funds are one of the key sources of revenues of leading American universities. Analysis of the investment policy of endowment funds and sovereign wealth funds shows that fundamental changes in the concept of investing began to occur since the late 1980s - early 1990s . Institutional investors of both these types ceased to focus on conservative instruments - bonds and deposits , and use other options: Global - stocks , Yale – private equity , hedge funds, real estate investments , etc. With the expand of the spectrum of instruments in which the funds are invested the income volatility increases either, and therefore the institutional investors should be both transparent and explain to the public the motives of investment strategy changes.

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McCowan, Tristan. "The growth of private higher education in Brazil: implications for issues of equity, quality and public benefit." education policy analysis archives 13 (April 11, 2005): 27. http://dx.doi.org/10.14507/epaa.v13n27.2005.

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There has been a dramatic growth in private higher education in Brazil in recent years. The World Bank has promoted this expansion on the basis of the private providers" ability to ensure a rapid increase in enrolment, to improve quality through competition between institutions, and to secure benefits for society at little public cost. However, the charging of fees means that the majority of Brazilians do not have access, and that inequalities are reproduced due to the relation between course costs and the value of the final diploma. Equitable access is, therefore, far from being achieved and is unlikely even with an increase in student loans and government subsidies. The contribution of private universities to the long-term development of society is seen to be limited due to lack of investment in research and community service.

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Krishna, Dr V. Murali, Dr T. Hima Bindu, and Dr Ravikumar Gunakala. "A Critical Analysis of Selected Public and Private Mutual Fund Schemes in India." Restaurant Business 118, no. 8 (April 25, 2019): 28–34. http://dx.doi.org/10.26643/rb.v118i8.7207.

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Mutual Fund Industry is one of the emerged dominant financial intermediaries in Indian Capital Market. The main objective of investing in a mutual fund is to diversify risk. Though the mutual fund invests in diversified portfolio, the fund managers take different levels of risk in order to achieve the schemes objectives. Mutual funds allow portfolio diversification and relative risk management through collection of funds from the savers/investors, the same investing in equity and debt stocks. This type of invested funds is managed by professional experts called as fund managers Funds are categorized as income should fixed base in India are a kind of mutual fund which makes investment in debt securities that have been issued to the corporate, banking institutions and to government in general

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Kalsie, Anjala, and Ashima Arora. "Assessing the Opportunities in Indian Market: Private Investments in Public Equity (PIPEs)." FIIB Business Review 4, no. 4 (October 2015): 3–12. http://dx.doi.org/10.1177/2455265820150401.

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Podedworna-Tarnowska, Dorota. "IPO as a VC-Funds Type of Exit." Journal of Management and Financial Sciences, no. 29 (July 29, 2019): 99–129. http://dx.doi.org/10.33119/jmfs.2017.29.5.

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The key characteristic of private equity finance is that investors hold their investments only for a limited period of time. The key goal of VC funds is to grow the company to a point where it can be sold at a price that far exceeds the amount of capital invested. This process is called an exit or divestment. There are three basic types of exits: going public, being acquired by a larger corporation, a sale to a third-party investor.It is a widely believed and accepted proposition in private equity literature that the initial public offering of a private equity portfolio company is the most successful and profitable exit opportunity. However, according to the few sources of literature, public offerings are not the preferred divestment type for venture capital firms. Going public is one of the most critical decisions in the lifecycle of a firm. This is not easy, as the process is very comprehensive and complex. Hence, a lot of considerations should be taken into account. Because every investee firm is different, a development plan to achieve a successful exit takes into consideration a number of macroeconomic and microeconomic factors. Moreover, several advantages and disadvantages of exit through an IPO could be indicated. The objective of this paper is to show the success and profitability of going public by VC funds. The VC’s exit type as a way of cashing out on its investment in a portfolio company is a consequence of the exit strategy, which means the plan for generating profits for owners and investors of a company. While an IPO is the most spectacular and visible form of exit, it is not the most common one, as historically in the US it was, but still in Europe it has not been yet. There will be both literature and statistical data coming from different studies and reports used in this research.

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Jadevicius, Arvydas. "Exchange-traded fund investing as European open-end diversified core equity real-estate funds' cash substitute." Journal of Property Investment & Finance 38, no. 2 (March 16, 2020): 156–60. http://dx.doi.org/10.1108/jpif-12-2019-0147.

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PurposeThe study is set to explore a viability for substituting part of cash holdings within European open-end diversified core equity (ODCE) real-estate funds with listed real-estate exchange-traded fund (ETF) alternative. Academically, this research bridges a knowledge gap within private real-estate market research.Design/methodology/approachFirst, the study investigates the correlation between ODCE and ETFs to assess series interdependence. Next, the study generates a blended ODCE and ETF portfolio and examines its performance by quantifying a) the contribution to returns and b) the diversification benefits.FindingsThe findings suggest that a 1 percent spare cash allocation to an ETF increases ODCE fund returns by few bps although the diversification benefits are more nuanced.Practical implicationsReal estate and other investment vehicles are encouraged to review their cash-holding strategies. Real estate, infrastructure or private equity vehicles could designate a small proportion of available cash to asset class-specific ETFs. These cash substitutes are likely to increase returns and could strengthen diversification, although there are some caveats. For ESG-conscious investors, sustainable ETFs and associated passive conduits with strong responsible investment characteristics could provide cash replacement alternatives at the margin.Originality/valueThe study adds additional evidence on the contested issue of blending private and public real estate.

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Peng, Yichen, Jing Zhou, Qiang Xu, and Xiaoling Wu. "Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”." Discrete Dynamics in Nature and Society 2014 (2014): 1–6. http://dx.doi.org/10.1155/2014/158765.

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In recent years, the demand for infrastructure has been largely driven by the economic development of many countries. PPP has proved to be an efficient way to draw private capital into public utility construction, where ownership allocation becomes one of the most important clauses to both the government and the private investor. In this paper, we establish mathematical models to analyze the equity allocation problem of PPP projects through a comparison of the models with and without the effects of the theory of “contracts as reference points.” We then derive some important conclusions from the optimal solution of the investment ratio.

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Yanosek, Kassia. "Policies for Financing the Energy Transition." Daedalus 141, no. 2 (April 2012): 94–104. http://dx.doi.org/10.1162/daed_a_00149.

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Historically, energy transitions have occurred gradually over the span of several decades, marked by incremental improvements in technologies. In recent years, public interest in accelerating the next energy transition has fueled a clean-energy policy agenda intended to underpin the development of a decarbonized energy economy. However, policies to date have encouraged investors to fund renewable energy projects utilizing proven technologies that are not competitive without the help of government subsidies. A true transition of the energy mix requires innovations that can compete with conventional energy over the long term. Investments in innovative technology projects are scarce because of the “commercialization gap,” which affects projects that are too capital-intensive for venture capital yet too risky for private equity, project, or corporate debt financing. Accelerating innovation through the commercialization gap will require governments to allocate public dollars to, and encourage private investment in, these riskier projects. Policy-makers will face a trade-off between prioritizing policies for accelerating the energy transition and accounting for the risks associated with innovation funding in a tight budgetary environment.

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Shaikh, Maria, Sumra Shaikh, Ghazala Benghal, Haseeb Haleem Shaikh, and Nadeem Juman Shah. "Managing the Profitability Performance of the Banks: Exploring the Antecedents through Case Examination of MCB Bank." Annals of Contemporary Developments in Management & HR 2, no. 3 (August 1, 2020): 25–32. http://dx.doi.org/10.33166/acdmhr.2020.03.004.

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Debt financing has been used as an instrument of filling the budget deficits both in the private and public sector. Over the years it has gained popularity and it is now a common phenomenon to find in the finical reports of most companies’ extent of debt. The contribution Advances and deposits are crucial for all banks. This research is aimed to judge impact of debt, investments, Advances, Equity, Taxes and deposits on profitability of banks. This research is aimed at identify impact of major factors on profitability of Muslim commercial bank of Pakistan (MCB) covering the period from 2011 to 2016 Secondary data was used from annual financial reports and from the website of Muslim commercial bank of Pakistan (MCB) and state bank of Pakistan. This research study is descriptive and correlative in nature. The data then analysed through multiple regression analysis in electronic views (e-views) in order to measure if there exists any relationship between bank profitability and leverage. Debt, Advances, Investment Equity and Taxes selected as independent variables and profitability as dependent variable in order to examine the effects of debt, Advances, Equity and Taxes on firm performance. The findings of the research are significant as per hypothetical relationship. The study revealed that bank advances, investments and equity has a positive effect on profitability whereas Taxes affects negatively to the profitability of MCB. The regression results show that Advances, Investments and equity which is independent variable is significant variable of profitability the dependent variable. Its significant at.000 level of significance as the p-value shows.

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Vaz Ferreira, José Manuel Bernardo. "Determinants of performance of closely – held (family) firms after going public: the role of the ownership structure, economy, changes in top management, partial sale, equity concentration after the IPO and shareholders in management." Corporate Ownership and Control 5, no. 2 (2008): 55–67. http://dx.doi.org/10.22495/cocv5i2p5.

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When a closely-held (family) company goes public, there are very specific and particular determinants that have crucial influences on the post-going public operational, social and financial performance of those firms. We investigate why firms decline significantly their profitability, efficiency, employment and activity levels, and show an increase on sales and capital investment when there is a transition from private to public ownership. We conclude that this decrease in performance is significantly higher, when one or more than one of the following facts happen after firms going public: first, when there are not shareholders in management, what implies increased agency costs; secondly, when the level of equity concentration after going public is low; in third place, when the level of equity retention by the founding shareholder is low; fourth, when the economy health during the timing of the sale is not in good shape; and lastly, when the old CEO is changed.

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Zangoueinezhad, Abouzar, and Adel Azar. "How public-private partnership projects impact infrastructure industry for economic growth." International Journal of Social Economics 41, no. 10 (October 7, 2014): 994–1010. http://dx.doi.org/10.1108/ijse-04-2013-0083.

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Purpose – Public-private partnership (PPP) is mutually beneficial relationships that are formed between the public and private sectors. The private-sector partner typically makes a substantial equity investment, and in return the public sector gains access to new or improved services. When properly vetted and structured, PPP allocate risk to the party best suited to handle it. The purpose of this paper is to examine the relationship between the scale and nature of the PPP's contribution as a driver of the economic growth and gross domestic product (GDP). Design/methodology/approach – Using statistics causality modeling and relevant statistical techniques, the dynamic interactions and interdependencies over PPP and economic growth were addressed and quantified. Findings – Although PPP can free up government resources for other public priorities, three key factors enable PPP to stimulate a country's economic growth: the number of PPP projects under way, the value of PPP projects, and the ideal type of PPP contracts in use. Originality/value – The number, value, and type of PPP, combined with supportive policies, power economic growth. Governments with well-established and enforced policies against corruption, combined with low business transaction costs, a transparent legislative system, and exchange rate and monetary stability are far more attractive to the private sector.

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Kalinin, Oleksandr, Viktoriya Gonchar, and Žaneta Simanavičienė. "Risk management of the investment marketing on diversified enterprises." Economics. Ecology. Socium 3, no. 4 (December 30, 2019): 35–44. http://dx.doi.org/10.31520/2616-7107/2019.3.4-5.

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Introduction. In modern economic environment, obtaining financial stability in the long run is one of the conditions for competitive advantages. The condition for achieving stability is the improvement of the risk management program, which is based on a balanced system of formation and use of available resources. Aim and tasks. The aim of this paper is to explore the trends of risk management of modern investors in the selection of objects for placement of capital and formation a strategy of marketing management for the diversified businesses. The tasks of the paper are to research the theoretical aspects of risk management and planning; to analyze the risk management on the diversified companies; to develop solutions to improve the system of marketing management on the diversified companies in the context of risk management. Results. Investment marketing activities are one of the main ways to develop and increase the competitiveness of the economy and the individual companies operating in it. Marketing activities allow you to attract investments that support the implementation of the company's development strategy, increase its assets, develop innovative products, enter promising markets, ensure development in a highly competitive environment and stimulate the company's capitalization in the future. The dynamic growth of a diversified company is largely possible through diversification of investment capital and raising investment funds through the placement of shares in the financial market. An increase in the investment efficiency of a diversified company is possible only if there is a system of control over the economic activities of its individual business lines, otherwise it is highly likely that irrational investment decisions will be made and investment capital eroded due to the lack of proper control over its planning, placement and subsequent management. Conclusions. Modern diversified enterprises have to show investors that firms are in the sphere of financial management. This will help with the main risk of diversification – undervaluing by fund market. Modern conglomerates on the one hand should be present in the most popular industries among investors like technologies or bioengineering but on the other hand they have to concentrate its activity on the principles of private equity or leveraged buyout firms. It means that firms have to actively use loan capital after the recession and use their equity as more conservative as possible. It will allow getting financial results as good as private equity funds but for the public conglomerates it will allow to keep present investors and to attract new ones with conservative strategy.

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Zasępa, Piotr. "Effectives of private equity and venture capital investments comparing with stock and bond market." Zeszyty Naukowe Wyższej Szkoły Humanitas Zarządzanie 18, no. 2 (June 30, 2017): 57–70. http://dx.doi.org/10.5604/01.3001.0010.2923.

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This paper examines approach and possibility of comparison of venture capital rate of returns with specific public benchmarks. Rate of return that are used by the public market analytics do not fit within venture capital cash flow characteristics. One of the methods that are presented in this article is Public Market Equivalent which enable simple comparison of venture capital rate of returns with effects of the public index or bond market for Bond Market Equivalent method.

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Chaplinsky, Susan, and David Haushalter. "Financing under Extreme Risk: Contract Terms and Returns to Private Investments in Public Equity." Review of Financial Studies 23, no. 7 (April 28, 2010): 2789–820. http://dx.doi.org/10.1093/rfs/hhq035.

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Gonzalez-Ruiz, Juan David, Alejandro Arboleda, Sergio Botero, and Javier Rojo. "Investment valuation model for sustainable infrastructure systems." Engineering, Construction and Architectural Management 26, no. 5 (June 17, 2019): 850–84. http://dx.doi.org/10.1108/ecam-03-2018-0095.

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Purpose The purpose of this paper is to develop an investment valuation model using the mezzanine debt mechanism based on blue bonds that explicitly allude to public–private partnerships (P3s) and project finance (PF). Additionally, this study proposes the financial captured value (FCV) theory for measuring how much financial value lenders may capture by becoming sponsors through financing of sustainable infrastructure systems (SIS). Design/methodology/approach The investment valuation model was validated through the Aguas Claras wastewater treatment plant as a case study. Findings The empirical results show that lenders may capture financial value by converting outstanding debt into equity shares throughout the operation and maintenance stage. Furthermore, case study results provide new insights into the implications of the debt–equity conversion ratio on the relationship between the sponsors’ internal rate of return and the FCV. Research limitations/implications The most significant limitation is the lack of primary and secondary information on blue bonds. Thus, robust statistical analyses to contrast results were not possible. Practical implications Researchers and practising professionals can improve their understanding of how mezzanine debt, P3s and PF into an investment valuation model allows financing SIS using a non-conventional financial mechanism. The recommendations will benefit both the academia as well infrastructure industry in bridging the gap between design theory and practice. Originality/value Sustainability components have not been addressed explicitly or combined in the financing’s structuring. Therefore, the investment valuation model could be considered a novel methodology for decision making related to financing and investment of SIS.

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Achleitner, Ann-Kristin, Christian Figge, and Eva Lutz. "Value creation drivers in a secondary buyout – the acquisition of Brenntag by BC Partners." Qualitative Research in Financial Markets 6, no. 3 (November 10, 2014): 278–301. http://dx.doi.org/10.1108/qrfm-06-2012-0018.

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Purpose – The purpose of this paper is to identify specific drivers of value creation in secondary buyouts. While this type of private equity deal has risen in importance in recent years, it is not yet well understood. Through an in-depth analysis of the acquisition of Brenntag by BC Partners, we develop propositions on the value creation profile of secondary buyouts. Design/methodology/approach – We use a single case study design to explore the information-rich context of a secondary buyout. The Brenntag case epitomizes the development of a company from forming part of a large conglomerate to being private-equity owned after the primary and secondary buyout, to its final disposition of public listing. Our analysis is based on ten semi-structured interviews with key protagonists and observers, as well as analysis of primary company data and additional secondary data sources. Findings – We propose that even if the investment management and monitoring skills of the primary and secondary private equity group are similar, there is still potential to realize operational improvements in a secondary buyout, due to either early exit of the primary private equity group or measures that further enhance management incentives. In addition, the Brenntag case shows that low information asymmetries can lead to higher leverage and that opportunities for multiple expansions are limited in secondary buyouts. Originality/value – While a secondary buyout has become a common exit route in recent years, we are the first to undertake an in-depth case analysis of a secondary buyout. Our study helps researchers and practitioners enhance their understanding of drivers behind the value creation profile of secondary buyouts.

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Andonov, Aleksandar, Roman Kräussl, and Joshua Rauh. "Institutional Investors and Infrastructure Investing." Review of Financial Studies 34, no. 8 (April 20, 2021): 3880–934. http://dx.doi.org/10.1093/rfs/hhab048.

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Abstract Institutional investors expect infrastructure to deliver long-term stable returns but gain exposure to infrastructure predominantly through finite-horizon closed private funds. The cash flows delivered by infrastructure funds display similar volatility and cyclicality as other private equity investments, and their performance similarly depends on quick deal exits. Despite weak risk-adjusted performance and failure to match the supposed characteristics of infrastructure assets, closed funds have received more commitments over time, particularly from public investors. Public institutional investors perform worse than private institutional investors. ESG preferences and regulations explain 25$\%$–40$\%$ of their increased allocation to infrastructure and 30$\%$ of their underperformance.

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Journal articles on the topic 'Private investment public equity'

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