What do Business Managers Think About Private Equity and Venture Capital?

BVCA Research Report, November 2010

20 Pages Posted: 14 Nov 2010

See all articles by Colin Ellis

Colin Ellis

Hult International Business School (London)

Date Written: November 11, 2010

Abstract

Private equity firms make money by investing in and building up businesses. This ranges from venture capitalists who provide funding to small companies and start-ups, to large buyout firms that invest in international companies and brands. Fundamentally, private equity is about value creation: increasing the value of a company over a finite period of time, and then selling it to realise those gains. In order to boost the value of the companies they invest in, private equity investors work closely with senior managers of portfolio companies. Yet there has been relatively little work looking at what those senior managers at the portfolio companies think of their private equity backers and the impact they have on the underlying businesses. This study addresses that gap, detailing the results of a survey of senior business leaders and managers that asked for their views and experiences of working with private equity investors.

Keywords: Private Equity, Portfolio Companies, Perceptions

JEL Classification: D22, L20

Suggested Citation

Ellis, Colin, What do Business Managers Think About Private Equity and Venture Capital? (November 11, 2010). BVCA Research Report, November 2010, Available at SSRN: https://ssrn.com/abstract=1698627

Colin Ellis (Contact Author)

Hult International Business School (London) ( email )

35 Commercial Road
London, E1 1LD
United Kingdom