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Private equity and venture capital in South Africa: A comparison of project financing decisions

David Portmann and Chipo Mlambo

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the manner in which private equity and venture capital firms in South Africa assess investment opportunities. The analysis was facilitated using a survey containing both Likert-scale and open-ended questions. The key findings show that both private equity and venture capital firms rate the entrepreneur or management team more highly above any other criterion or consideration. Private equity firms, however, also place emphasis on financial criteria more than venture capitalists. There is also an observable shift in the investment activities away from start-up funding and towards later-stage deals. Risk appetite has also declined post the financial crisis.

Keywords: Private equity; venture capital; investment criteria; South Africa (search for similar items in EconPapers)
JEL-codes: G11 G24 G34 N27 (search for similar items in EconPapers)
Date: 2010-12-13, Revised 2012-11-16
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Handle: RePEc:pra:mprapa:42892