文章基本信息

标题：Market Conditions and the Exit Rate of Private Equity Investments in an Emerging Economy
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作者：Andréa Maria Accioly Fonseca Minardi ; Adriana Bruscato Bortoluzzo ; Piero Rosatelli 等
期刊名称：BAR - Brazilian Administration Review
印刷版ISSN：1807-7692
电子版ISSN：1807-7692
出版年度：2019
卷号：16
期号：2
页码：1-26
DOI：10.1590/1807-7692bar2019180070
出版社：Associação Nacional de Pós-Graduação e Pesquisa em Administração
摘要：Private Equity (PE) funds are active investors. Besides providing capital, they improve the governance, operational performance and innovation of the investee companies. However, potential misalignment between the fund manager and the company owner regarding exit timing is a limitation of the model. PE funds have a finite-life, and thus they have to liquidate investments after holding them for a certain period. They tend to time the market to exploit favorable market conditions and obtain higher selling prices, and consequently, PE funds may divest before accomplishing the value creation plan. In this article, we use the hazard model to investigate the magnitude of the impact of market conditions on the exit rate of PE deals in Brazil, a volatile emerging economy, and if it increases the chances of exiting investments with holding periods shorter than two years. We analyze a sample of 470 PE deals invested between 1994 and 2014, and we investigate four variables related to market conditions: the stock market price-earnings ratio, the number of IPOs, the Brazilian real (the Brazilian currency) appreciation against the US dollar and the Brazilian interest rate. Our results show that favorable market conditions more than double the exit rate and increase the probability of quick flips.
关键词：Private equity; market timing; hazard model; exit; holding period.