This paper analyzes the role of foreign VCs in driving venture success in emerging markets. We analyze a comprehensive data set of 4753 portfolio companies from China. We test whether the presence of a foreign VC increases the likelihood that a portfolio company is successfully exited. We find...

This paper examines why large PE funds earn lower returns. I argue that large PE-funds are suited to making large investments and small PE-funds are suited to nurturing start-ups. Thus, the sub-optimal investment in small companies is one driver of the size effect in private equity. A...

This paper examines diversification as a source of value creation and destruction in private equity (PE) funds. Previous literature has focused on the ‘diversification discount' in corporations. However, in PE funds, diversification might increase returns by ameliorating managerial risk...

We show that it is a signal of deal quality in cross-border M&A if acquirers have private equity firms as owners (‘PE backing'). As such, announcements of cross-border M&A deals by PE-backed acquirers are associated with positive stock price reactions, but only if targets are in poor...