Private Equity And Venture Capital

6778 Words28 Pages
Final year project proposal


This section will give a short introduction to this dissertation, by identifying a context for the placement of the research in terms of the literature and also why this topic is worthy of research. An overview of the private equity industry will be given, followed by the research objectives, contributions and targeted audience.

This paper examines the effect of private equity industry on the performances ' of portfolio companies in the UK. Private equity is a capital or an asset in operating companies that are not publicly traded. Private equity firms create investment funds that receive capital from investors known as limited partners. It is medium to
…show more content…
The private equity investors known as the general partners, use their capital along with the money borrowed from banks, to buy companies that they believe could be notably more successful with the right combination of talent, strategy and capital. Private Equity investment market has been the fastest growing market in the past 15 years for corporate finance, compared to other markets such as the public equity and bond markets. George (1996) wrote a book called ?The economics of the private equity market ' that examines the reasons for the market 's unpredictable growth over the past fifteen years and highlights the key features of that growth. It examines the economic basis of the private equity market, analyzes the market 's current role and development in corporate finance, and describes the market 's institutional structure. However despite its rapid growth and increased significant for corporate finance, it has received little attention in the academic literature or press.

Joshua Lerner, 1994 wrote a book called ?The Syndication of Venture Capital Investments ' in which he said that "Between 1980 and 1994, the amount of private equity outstanding rose from less than $5 billion to $100 billion." This study examines the reasons for the market 's incredible growth between 1980-1994 and
Get Access