European Business Schools Librarian's Group
IESE Research Papers,
IESE Business School
No D/691: Allocation determinants of institutional investments in venture capital and private equity limited partnerships in Central Eastern Europe
Alexander P. Groh (), Heinrich Liechtenstein and Miguel A. Canela
Additional contact information
Alexander P. Groh: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Heinrich Liechtenstein: IESE Business School, Postal: Research Division, Av Pearson 21, 08034 Barcelona, SPAIN
Miguel A. Canela: University of Barcelona
Abstract: Growth expectations and institutional settings are favorable in CEE to establish a vibrant VC/PE market. However, there is lacking supply of risk capital. We address the obstacles for institutional investments in the region via a questionnaire addressed to (potential) Limited Partners worldwide. The respondents provide information about their criteria for international asset allocation. The protection of property rights is the dominant concern, followed by the need to find local quality General Partners and by the management quality and skills of local entrepreneurs. Further, the expected deal flow plays an important role for the allocation process, while the investors fear bribing and corruption. CEE is regarded as very attractive, especially the economic and entrepreneurial activity. However, the investors are not comfortable there with the protection of their claims.
Keywords: Venture capital; Private equity; International asset allocation; Institutional investors
48 pages, May 7, 2007
Full text files
DI-0691-E.pdf
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