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Complimentary value-adding roles of corporate venture capital and independent venture capital investors
03/12/2001. In the last five years, corporate venture capitalists have become an increasingly important source of finance for new technology based firms. Earlier research suggests that both independent venture capitalists and corporate venture capitalists often provide valuable value-added benefits for their portfolio companies. However, there is little research that actually compares and contrasts the value-adding capabilities of independent venture capital and corporate venture capital investors. In this paper, Markku Maula and Dr Gordon Murray focus on the differences in the value-added benefits provided by the two types of investors to their portfolio firms. 
Corporate venture capital and the exercise of the options to acquire
27/11/2001. Large-technology based corporations have become increasingly active in corporate venture capital (CVC) in order to gain strategic insights into the development of new technologies, markets and business models. Markku Maula of Helsinki University and Dr Gordon Murray of London Business School analyse over 200 CVCs.
Performance benchmarks for institutional investors: measuring, monitoring and modifying investment behaviour
20/11/2001. Benchmarks are pretty much absent in private equity investing and so it is vital to look at fee structures. In other asset classes, benchmarks can either provide the right incentives for fund managers or they can seriously distort their investment behaviour, say David Blake and Allan Timmermann of Birckbeck College.
Leveraged management buy-outs at KKR: Historical perspectives on private equity, debt disciplines, and LBO governance
14/11/2001. As with all forms of private equity investing, leveraged buy-outs require close evaluation, sophisticated financing, diligent oversight and patience. What makes the LBO distinctive is that it employs high leverage in the initial financing, and that it is normally a rehabilitative acquisition strategy undertaken in mature sectors of industry where under-performing companies are ripe for rejuvenation. It was in its formative stages, and remains, a highly specialised technique for acquiring assets and improving their value. What makes it historically important is that its impact - the lessons it has to teach about incentives for management and corporate governance - have spread to the wider corporate world. George Baker, Harvard Business School and George Smith, Stern School of Business discuss.
Negotiating the best valuation and terms for early-stage investment
05/11/2001. The valuation and negotiation processes involved in early-stage investments are unnecessarily inefficient, says Joseph Bartlett. Here, he presents the results of an empirical survey of venture capitalists and argues for a new type of approach.
The challenge of performance assessment
30/10/2001. Despite advances during the past decades in the pricing and risk adjustment of return in public markets, the measurement of risk and return in private equity has advanced relatively little. This is surprising, given the importance of return measurements for both fund managers and private equity investors. Paul Gompers and Josh Lerner, both fellows at the National Bureau for Economic Research discuss. (Extract)
The changing face of M & A
17/10/2001. The growth in volume and sophistication of merger and acquisitions activity has increased demand for solutions to managing transactional risk according to this article from M.Enelow and Patrick M.Cunningham of Marsh Private Equity.
Determinants of private equity fundraising in Western Europe
10/10/2001. What are the main factors that affect private equity fundraising in countries where there is little information about final returns? Jose Marti, University Complutense of Madrid and Marina Balboa, University of Alicante, attempt to answer this question.
Risk and valuation of collaterised debt obligation
03/10/2001. Private equity firms in the US have been pricing collateralised debt obligation for many years and now European firms are following suit. This paper by Darrell Duffie and Nicolae Garleanu of Stanford University studies the risk analysis and market valuation of this highly complex debt investment.
Venture capital distributions: short-run and long-run reactions
13/06/2001. This paper examines stock distributions by US venture capital firms back to their institutional investors. This is a unique environment in which transactions by informed insiders are exempt from anti-fraud provisions. Here, Josh Lerner and Paul Gompers of Harvard Business School, investigate this legal form of ‘insider trading'.
Benchmarks for private equity fund investment
05/06/2001. This report by Wilshire Associates presents a new methodology for measuring return and risk for private equity investments -using buy-out investments as an example. This allows investors to create useful and risk-adjusted performance benchmarks.
The private equity premium puzzle
29/05/2001. Returns to private equity are in some cases two to three percentage points lower than the returns on public equity, according to this report conducted at the University of Chicago GSB.
The cross-section of expected returns
29/05/2001. Can past performance really be a good guide to future performance? This report from the University of Chicago GSB examines the complex relationship between expected and historical returns.
The climate for growth entrepreneurship in Europe
29/05/2001. Entrepreneurs are the backbone of today's ‘new economy'. So how favourable is the environment in which they are expected to operate? This 3i Venturelab report finds out by looking at a range of factors across Europe that affect entrepreneurial businesses at different stages of their development.
Can firms learn to acquire?
29/05/2001. Just because a firm has experience in the M&A sector doesn't mean all its future deals will be successful. This INSEAD report looks at the correlation between past and future performance.
How asset allocation is influenced by the valuation of liabilities
29/05/2001. In February 2001, there were three valuation bases for pension liabilities in the UK: statutory, MFR and FRS17. This report by David Blake of the Pensions Institute argues that a single valuation basis for pension liabilities should be developed in a way that ensures pension funds are not discouraged from investing in private equity.
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