Recent Developments in the European Private Equity Markets

Kristiina Raade and Catarina Dantas Machado Rosa

No 319, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper examines market developments in venture capital and buyout investment in Europe and the United States, through the analysis of funds raised, investments and exits. It discusses the profitability differential of European venture capital investment in comparison with the United States and suggests that it could originate in the different ways in which research is financed and the unequal supply of financing, notably from business angels, for young companies that are not sufficiently mature for venture capital financing. Investment performance measures used are the internal rate of return (IRR) and investment multiples. The analysis covers aggregated industry returns and venture capital funds' returns aggregated by vintage year. It relies on the VentureXpert private equity and venture capital performance database, maintained by Thomson Venture Economics.

Keywords: Venture Capital; profitability; performance; IRR; Europe; United States; Raade; Dantas Machado Rosa (search for similar items in EconPapers)
JEL-codes: G10 G24 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2008-04
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0319

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