Style Drift in Private Equity

Journal of Business Finance and Accounting - Tập 36 Số 5-6 - Trang 645-678 - 2009
Douglas J. Cumming1,2,3,4, Grant Fleming1,2,3,4, Armin Schwienbacher1,2,3,4
1Associate Professor, Université catholique de Louvain and University of Amsterdam Business School. They are grateful to the EVCA for their helpful feedback. They also benefited from discussions with Ulrich Hege, Ludovic Phalippou, Manju Puri, and Alessandro Sembenelli
2Managing Director, Wilshire Private Markets Group (and Visting Fellow, Australian National University)
3The authors are, respectively, Associate Professor and Ontario Research Chair, York University Schulich School of Business
4discussions with conference and seminar participants at the University of Amsterdam (2004) and the RICAFE Conference in Frankfurt (2004), the Third Corporate Finance Day in Leuven (2005), Tilburg University (2005), University of Grenoble (2005), Catholic University of Leuven (2005), and Catholic University of Louvain (2006). They also thank Peter Pope (editor) and the anonymous referee for useful comments as well as Sandra Sizer for her editorial assistance.

Tóm tắt

Abstract:  We introduce the concept of style drift to private equity investment. We present theory and evidence pertaining to style drifts in terms of a fund manager's stated focus on particular stages of entrepreneurial development. We develop a model that derives conditions under which style drifts are less likely among younger fund managers. We also show ways in which changes in market conditions can affect style drifts, and differences for funds committed to early‐stage investments compared to funds committed to late‐stage investments. We find some evidence of a positive relation between style drifting and investment performance.

Từ khóa


Tài liệu tham khảo

10.1086/262063

10.1016/S0304-405X(03)00064-3

10.1016/0304-405X(90)90064-7

10.1111/j.1468-5957.2006.00005.x

Brown K. C.andW. V.Harlow(2004) ‘Staying the Course: Mutual Fund Investment Style Consistency and Performance Persistence’ Working Paper ( University of Texas ).

10.1111/j.1468-5957.2007.02045.x

10.1093/rfs/15.5.1407

10.1016/j.jfineco.2004.03.006

10.1111/1468-0297.00680

10.1016/j.jcorpfin.2007.04.007

10.1093/rfs/hhn072

10.1080/13691060802351206

10.1016/S0378-4266(02)00389-8

10.1111/j.1755-053X.2005.tb00119.x

Das S., 2002, The Private Equity Discount: An Empirical Examination of the Exit of Venture Backed Companies, Journal of Investment Management, 1, 152

10.1016/S0929-1199(03)00059-2

10.1111/1468-5957.00447

10.1111/j.1540-6261.1995.tb05185.x

10.1016/0304-405X(96)00874-4

10.1086/467356

10.2307/2534802

Gompers P. A., 1999, The Venture Capital Cycle

10.1016/S0304-405X(99)00052-5

Hege U. F.PalominoandA.Schwienbacher(2003) ‘Determinants of Venture Capital Performance: Europe and the United States’ Working Paper ( HEC Paris ).

10.1111/j.1540-6261.2004.00680.x

10.1111/j.0306-686X.2005.00608.x

10.1016/S0929-1199(00)00003-1

Jones C. M.andM.Rhodes‐Kropf(2003) ‘The Price of Diversifiable Risk in Venture Capital and Private Equity’ Working Paper ( Columbia University Graduate School of Business ).

10.1016/S0929-1199(02)00021-4

10.1016/j.jbankfin.2003.07.005

10.1111/j.1540-6261.2005.00780.x

10.1016/0304-405X(94)90035-3

10.1016/S0304-405X(03)00203-4

Ljungqvist A. P.andM. P.Richardson(2003) ‘The Investment Behavior of Private Equity Fund Managers’ Working Paper ( Stern School of Business New York University ).

10.1111/1468-036X.00130

Manigart S. M. A.Korsgaard R.Folger H.SapienzaandK.Baeyens(2002a) ‘The Impact of Trust on Private Equity Contracts’ Working Paper ( Vlerick Leuven Gent Management School ).

Manigart S. A.Lockett M.Meuleman M.Wright H.Landstrom H.Bruining P.DesbrièresandU.Hommel(2002b) ‘Why do European Venture Capital Companies Syndicate?’ Working Paper ( Vlerick Leuven Gent Management School ).

10.1016/S0883-9026(00)00067-7

10.1016/j.jcorpfin.2004.02.003

10.1111/j.1745-6622.2004.tb00599.x

10.1111/j.1540-6261.1991.tb03770.x

10.1016/j.jfi.2004.02.003

10.1016/j.jcorpfin.2007.04.002

10.1093/rfs/hhn053

10.1016/0883-9026(92)90032-M

10.1016/S0883-9026(96)00052-3

Schwienbacher A.(2002) ‘An Empirical Analysis of Venture Capital Exits in Europe and the United States’ Working Paper ( University of Amsterdam ).

10.1016/S0883-9026(02)00099-X

10.1111/1468-0262.00052

10.1111/j.0306-686X.2005.00617.x

Wermers R.(2002) ‘A Matter of Style: The Causes and Consequences of Style Drift in Institutional Portfolios’ Working Paper ( Robert H. Smith School of Business University of Maryland at College Park ).

10.1046/j.1467-6486.2003.00412.x

10.1111/1468-5957.00201

10.1016/S0883-9026(99)00052-X

10.1016/j.ejor.2003.10.028

Thông tin
Thông tin xuất bản

Journal of Business Finance and Accounting

Tập 36 Số 5-6

645-678

Thông tin tác giả