Private Equity and Venture Capital in Brazil: An Analysis of its Recent Evolution
17 Pages Posted: 1 Feb 2012 Last revised: 18 Apr 2014
Date Written: January 31, 2012
This article focuses on the main idiosyncrasies of the PEVC in Brazil and its evolution from 2004 to 2009. The main idiosyncrasies are the participation of investors in the investment process, absence of leveraged buyouts, shared control and use of special rights to compensate for the absence of a controlling stake. The main changes observed are the increase of private equity investments vis-à-vis venture capital, of the efficiency of managers in the selection process, of the use of special rights to compensate for the lack of control in the portfolio companies such as veto power, of the use of arbitration panels for the resolution of conflicts, and of the participation of limited partners in the investment process.
Keywords: private equity, venture capital, Brazil
JEL Classification: G24
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