1 / 9

Discussion of Hege, Palomino & Schwienbacher Acharya & Kehoe

Discussion of Hege, Palomino & Schwienbacher Acharya & Kehoe. Nicolas Véron 2 nd ECB-CFS Network Symposium Frankfurt, 14 February 2008. Hege, Palomino & Schwienbacher Venture Capital Performance: The Disparity between Europe and the US.

pierce
Télécharger la présentation

Discussion of Hege, Palomino & Schwienbacher Acharya & Kehoe

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Discussion ofHege, Palomino & SchwienbacherAcharya & Kehoe Nicolas Véron 2nd ECB-CFS Network Symposium Frankfurt, 14 February 2008

  2. Hege, Palomino & SchwienbacherVenture Capital Performance: The Disparity between Europe and the US • Measurement of gross return over successive rounds of VC investment • 146 company stories in Europe (half in UK), 233 in US • Results • Europe underperforms the US • More mature VC landscape in the US (specialisation, syndication, interaction with corporate investors) • US VCs in Europe don’t perform better than European VCs • Legal origin, tax environments make little difference • No clear picture on exit conditions

  3. Challenges • Limited time period observed, market upheavals • Limited size of samples overall • Different European sample for exits • Excess return definition • Valuation at first round • Observations often inconclusive

  4. Questions • Differentials between industries • Differentials between European countries • Differentials among VC actors • Differences Europe / US? • Typology of good / poor performers? • Other factors that affect post-entry growth • Size of US market • Labour rigidity • Culture… • Role of innovation ecosystems

  5. Acharya and KehoeCorporate Governance & Value Creation: Evidence from Private Equity • Work in progress • 59 large UK private equity transactions (aim is 80) • By 11 ‘large and mature PE houses’ • Decomposition of return into leverage, sector component, and ‘alpha’ • Correlated with ‘operational improvements’ • Measures of financial performance • Corporate governance changes

  6. A ‘rosy’ view of Private Equity • Not just asset-strippers or tax arbitrageurs • Effect on employment at beginning • Performance & growth correlated with alpha • Efficient use of capital • ‘Organic’ deals have highest alpha • Active corporate governance

  7. Investment Trends from: Lerner & al, ‘The Global Economic Impact of Private Equity Report 2008’, World Economic Forum

  8. Questions • How specific is the UK? • Including on corporate governance • Market downturn?

  9. Thank You For Your Attention +32 473 815 372 / n.veron@bruegel.org www.bruegel.org

More Related