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An analysis of the management practices of Brazilian private equity firms and their impact on company performance

Luiz Egydio Malamud Rossi and Roy Martelanc

Venture Capital, 2013, vol. 15, issue 2, 151-172

Abstract: This paper examines the proposition that private equity funds (PEFs) improve the performance of their investee companies. The study was divided into two parts: (i) an analysis of the characteristics of the private equity investment cycle that impact on corporate performance and (ii) validation that companies that received investments from PEFs outperformed firms that did not receive an investment from PEFs. The analysis of the characteristics and practices of PEFs was based on questionnaires sent to the senior executives. Examination of the performance of companies that had attracted investment from PEFs was based on an analysis of various operational and financial indicators of firms in the three years preceding and following their initial public offering (IPO). This confirmed the thesis that there are common practices among PEFs and that they create value for their investees' companies.

Date: 2013
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DOI: 10.1080/13691066.2013.802165

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