Creating value in investments with the use of private equity funds
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Published:
Jun 22, 2020
Keywords:
value creation, private equity, return on investment, investment process
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Abstract
The influence of the private equity sector on the contemporary economy is quite significant. This is why the present paper attempts to examine mechanisms private equity investors apply in order to increase the value of their investments. The literature review has identified the most fundamen- tal elements of creating value on the basis of empirical, academic studies that verified hypotheses regarding the influence of particular mechanisms on the process of value creation in private equity investments. This paper is divided into five parts that describe the elements of the investment pro- cess, research into value creation, financial arbitration, as well as direct and indirect mechanisms of creating investment value. The paper is mainly based on the review of foreign-language literature.
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How to Cite
Mikołajczyk, O. ., & Owedyk, B. . (2020). Creating value in investments with the use of private equity funds. Journal of Management and Financial Sciences, (40), 9–20. https://doi.org/10.33119/JMFS.2020.40.1
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Articles
References
Compact publications
1. Baker, H.K., Filbeck, G., Kiymaz, H. (Eds) (2016). Private Equity. Opportunities and Risks. New York: Oxford University Press.
2. Błach, J. (2018). Innowacje finansowe w przedsiębiorstwie. Warszawa: Wydawnictwo C.H. Beck.
3. Caputa, W., Paździor, A., Krawczyk-Sokołowska, I. (2017). Wartość klienta w perspektywie wiedzy i rozwoju przedsiębiorstwa. Warszawa: Texter.
4. Caselli, S., Garcia-Appendini, E. (2008). Explaining returns in private equity investments. Mediolan: Universita Commerciale L. Bocconi.
5. Leleux, B., Swaay, H., Megally, E. (2015). Private equity 4.0. Hoboken: Willey.
6. Leeds, R., Satyamurthy, N. (2015). Private Equity Investing in Emerging Markets. Opportunities for Value Creation. New York: Palgrave Macmillan.
7. Loos, N. (2006). Value creation in leveraged buyouts. Wiesbaden: Deutscher Universitaets-Verlag.
8. Ross, S., Westerfield, R., Jaffe, J. (2016). Corporate finance. New York: McGraw-Hill Education.
9. Samuelson, P., Nordhaus, W.D. (2012). Ekonomia. Poznań: Dom Wydawniczy Rebis.
10. Sobańska-Helman, K., Sieradzan, P. (2013). Inwestycje private equity/venture capital. Warszawa: Wydawnictwo Key Text.
11. Szlęzak-Matusewicz, J., Felis, P. (Eds.) (2014). Finansowanie przedsiębiorstwa. Ujęcie teore¬tyczno-praktyczne. Warszawa: Oficyna a Wolters Kluwer business.
12. Wright, M., Coyne, J. (1991). UK Management Buy-Outs: Debt, Equity and Agency Cost Implications. London: Croom-Helm.
13. Wrzesiński, M. (2006). Kapitał podwyższonego ryzyka. Proces inwestycyjny i efektywność. Warszawa: Szkoła Główna Handlowa w Warszawie - Oficyna Wydawnicza.
14. Zimny, A. (2013). Decyzje na rynkach Venture Capital/private equity. Łódź: Wydawnictwo Uniwersytetu Łódzkiego.
Papers and studies
1. Acharya, A., Viral, V., Gottschalg, O.F., Hahn, M., Kehoe, C. (2009). Corporate Governance and Value Creation: Evidence from private equity. Finance Working Papers, No. 232, European
Corporate Governance Institute (ECGI).
2. Berg, A., Gottschalg, O. (2005). Understanding value generation in buyouts. Journal of Restructuring Finance, Vol. 2, No. 1.
3. Cotter, J., Peck, S. (2001). The structure of debt and active equity investors: the case of buyout specialists. Journal of Financial Economics, No. 59.
4. Easterwood, J., Seth, A., Singer, R. (1989). The impact of leveraged buyouts on strategic direction. California Management Review, No. 32.
5. Fox, I., Marcus, A. (1992). The causes and consequences of leveraged management buyouts. Academy of Management Review, No. 17 (1).
6. Hannus, S. (2015). Value Creation in private equity: A Case Study of Outperforming Buyouts in the Nordic Countries. Tampere University of Technology - Publications, Vol. 1328.
7. Jensen, M., Meckling, W. (1976). Theory of the Firm: Managerial Behavior Agency Costs and Ownership Structure. Journal of Financial Economics, No. 4.
8. Kaplan, S. (1989). The effects of management buyouts on operating performance and value. Journal of Financial Economics, No. 24.
9. Smith, A. (1990). Corporate ownership structure and performance: The case of management buy-outs. Journal of Financial Economics, No. 27.
10. Wright, M., Robbie, K. (1996). The investor-led buy-out: a new strategic option. Long Range Planning. The Academy of Management Annals, Vol. 29, No. 5.
1. Baker, H.K., Filbeck, G., Kiymaz, H. (Eds) (2016). Private Equity. Opportunities and Risks. New York: Oxford University Press.
2. Błach, J. (2018). Innowacje finansowe w przedsiębiorstwie. Warszawa: Wydawnictwo C.H. Beck.
3. Caputa, W., Paździor, A., Krawczyk-Sokołowska, I. (2017). Wartość klienta w perspektywie wiedzy i rozwoju przedsiębiorstwa. Warszawa: Texter.
4. Caselli, S., Garcia-Appendini, E. (2008). Explaining returns in private equity investments. Mediolan: Universita Commerciale L. Bocconi.
5. Leleux, B., Swaay, H., Megally, E. (2015). Private equity 4.0. Hoboken: Willey.
6. Leeds, R., Satyamurthy, N. (2015). Private Equity Investing in Emerging Markets. Opportunities for Value Creation. New York: Palgrave Macmillan.
7. Loos, N. (2006). Value creation in leveraged buyouts. Wiesbaden: Deutscher Universitaets-Verlag.
8. Ross, S., Westerfield, R., Jaffe, J. (2016). Corporate finance. New York: McGraw-Hill Education.
9. Samuelson, P., Nordhaus, W.D. (2012). Ekonomia. Poznań: Dom Wydawniczy Rebis.
10. Sobańska-Helman, K., Sieradzan, P. (2013). Inwestycje private equity/venture capital. Warszawa: Wydawnictwo Key Text.
11. Szlęzak-Matusewicz, J., Felis, P. (Eds.) (2014). Finansowanie przedsiębiorstwa. Ujęcie teore¬tyczno-praktyczne. Warszawa: Oficyna a Wolters Kluwer business.
12. Wright, M., Coyne, J. (1991). UK Management Buy-Outs: Debt, Equity and Agency Cost Implications. London: Croom-Helm.
13. Wrzesiński, M. (2006). Kapitał podwyższonego ryzyka. Proces inwestycyjny i efektywność. Warszawa: Szkoła Główna Handlowa w Warszawie - Oficyna Wydawnicza.
14. Zimny, A. (2013). Decyzje na rynkach Venture Capital/private equity. Łódź: Wydawnictwo Uniwersytetu Łódzkiego.
Papers and studies
1. Acharya, A., Viral, V., Gottschalg, O.F., Hahn, M., Kehoe, C. (2009). Corporate Governance and Value Creation: Evidence from private equity. Finance Working Papers, No. 232, European
Corporate Governance Institute (ECGI).
2. Berg, A., Gottschalg, O. (2005). Understanding value generation in buyouts. Journal of Restructuring Finance, Vol. 2, No. 1.
3. Cotter, J., Peck, S. (2001). The structure of debt and active equity investors: the case of buyout specialists. Journal of Financial Economics, No. 59.
4. Easterwood, J., Seth, A., Singer, R. (1989). The impact of leveraged buyouts on strategic direction. California Management Review, No. 32.
5. Fox, I., Marcus, A. (1992). The causes and consequences of leveraged management buyouts. Academy of Management Review, No. 17 (1).
6. Hannus, S. (2015). Value Creation in private equity: A Case Study of Outperforming Buyouts in the Nordic Countries. Tampere University of Technology - Publications, Vol. 1328.
7. Jensen, M., Meckling, W. (1976). Theory of the Firm: Managerial Behavior Agency Costs and Ownership Structure. Journal of Financial Economics, No. 4.
8. Kaplan, S. (1989). The effects of management buyouts on operating performance and value. Journal of Financial Economics, No. 24.
9. Smith, A. (1990). Corporate ownership structure and performance: The case of management buy-outs. Journal of Financial Economics, No. 27.
10. Wright, M., Robbie, K. (1996). The investor-led buy-out: a new strategic option. Long Range Planning. The Academy of Management Annals, Vol. 29, No. 5.