Syndication in Private Equity Transactions

Abstract

We empirically investigate possible reasons for successful syndications in private equity transactions. To this end, we analyze the answers of 115 private equity firms regarding relevant resources of potential syndication partners. Based on structural equation modeling we find that only three out of six main resources of potential syndication partners have a significantly positive impact on the perceived success of a private equity syndication: financial resources, organizational network and a syndication partner's reputation. Rather remarkably, shorter distances between a potential syndication partner and the portfolio firm have a significantly negative influence on the perceived success of a syndication, while a partner's implicit knowledge and experience as well as issues of the organizational culture are of no significant importance.

Notice: Paper is written in German.

Keywords: G24, G32, G34

JEL Classification: empirical analysis, private equity, resource-based view, syndication