AEPH
Home > Conferences > Vol. 4. SDIT2024 >
Diversified Exploration of Private Equity Exit Path
DOI: https://doi.org/10.62381/ACS.SDIT2024.34
Author(s)
Siqi Wu
Affiliation(s)
School of Economics and Management, Nanyang Normal University, Nanyang, Henan, China Corresponding author
Abstract
The exit of private equity investment is a key part of the investment process, which not only affects the realization of investment returns, but also reflects the maturity and activeness of the private equity market. With the development and innovation of the financial market, the exit path of private equity is gradually showing a diversified trend. This paper aims to explore the diversification of private equity exit paths, including initial public offering (IPO), merger and acquisition, equity transfer, repurchase and S-fund transactions, and analyze their characteristics, applicable conditions, advantages and disadvantages, and their impact on the private equity market. The exit path of private equity funds should be comprehensively considered according to many factors such as market environment, enterprise development stage and fund investment strategy, so as to maximize investment returns and minimize risks. Under the background of the increasingly mature and complex capital market, the exploration of diversified exit paths is of great significance for the sustainable development of private equity funds.
Keywords
Private Equity Exits; Diversification; Investment Returns; Capital Market Maturity
References
[1] George W. Fenn, Nellie Liang ,and Stephen Prowse.The Economics of the private EquityMarket[J].Board of Governors of the Federal Reserve System.Washton. D.C. [2] Bascha,A.,Walz,U .Convertible securities and optimal exit decisions in venture capital finance[J].Journal of Corporate Finance,No.7,285-306. [3]Cumming ,D.,J.,Fleming,G.,Suchard,J.,A.Venture capitalist value-added activities, fundraising and draw downs[J].Journal of Banking&Finance,No.29,295-331. [4] Cumming ,D.J. ,Macintosh.Across-country comparison of full and partial exits[J].Journal of Banking and Science,No.27,511-548. [5]Cumming,D.J.,Macintosh,J.,G.. Venture Capita Exits in Canada and the United States[J].University of Toronto Law Journal,Vol.53,101-200. [6]Cumming,D.J.,Macintosh,J.,G.. Venture capital investment duration in Canada and the United States[J].Journal of Multinational Financial Management, No. 11.445-463. [7]Lerner,J.Venture Capital and Private Equity–A Casebook [J].New York: John Wiley& Sons ,Inc. [8]Gompers,PaulAlan.and Lerner.The Venture capital cycle[M].MIT press,Boston,1999,8-10. [9]Gompers,Lerner.Ownership .An Examination of Convertible Securities in Venture Capital Investments[J].Working Paper. Harvard University,Cambridge,MA.1997OECD.201. [10]Sahlman,Willian.The Structure and Governance of Venture Capital Organization[J].Journal Of Financial Economics27, 1990473-524. [11]Gomper,PaulAlan.and Lerner.Venture capital distributions:Short-run and long-run reactions[J].Journal of Finance, 53199, 8216, 1-6184.
Copyright @ 2020-2035 Academic Education Publishing House All Rights Reserved