Value Creation in Venture Capital and Private Equity

Download files
Access & Terms of Use
open access
Copyright: Humphery-Jenner, Mark
Altmetric
Abstract
This thesis examines the drivers of value-creation and value-destruction in venture capital (VC) and private equity (PE) funds. VC/PE funds have become an increasingly important financial intermediary. They are a key source of capital for young companies who might otherwise have difficulty raising funds from stock-markets or from lenders. VC/PE funds can also help larger companies to restructure and re-direct operations. However, not all VC/PE funds earn super-normal returns or succeed in fostering innovation and value-creation. Subsequently, this thesis examines the drivers of value-creation in VC/PE funds. This thesis highlights the skewness that is present in VC/PE funds returns. The thesis then examines the role of fund-level characteristics in determining VC/PE performance. The thesis focuses on the role of a fund s size and diversification. The thesis also examines typical incentive contracts between VC/PE funds and their investors, and shows that the traditional incentive schemes can lead to sub-optimal performance. The thesis then uses this background to examine the structure of Australia s Innovation Investment Fund scheme, which is designed to support VC funds in their investments in start-up companies. The main contributions of this thesis are to highlight the drivers of VC/PE fund performance and to propose ways to incentivize and select value-creating funds.
Persistent link to this record
Link to Publisher Version
Link to Open Access Version
Additional Link
Author(s)
Humphery-Jenner, Mark
Supervisor(s)
Powell, Ronan
Creator(s)
Editor(s)
Translator(s)
Curator(s)
Designer(s)
Arranger(s)
Composer(s)
Recordist(s)
Conference Proceedings Editor(s)
Other Contributor(s)
Corporate/Industry Contributor(s)
Publication Year
2012
Resource Type
Thesis
Degree Type
PhD Doctorate
UNSW Faculty
Files
download whole.pdf 2.77 MB Adobe Portable Document Format
Related dataset(s)