Journal article
Mutual fund investments in private firms
Journal of financial economics, v 136(2), pp 407-443
May 2020
Abstract
Historically, a key advantage of being a public firm was broader access to capital, from a disperse group of shareholders. In recent years, such capital has increasingly become available to private firms as well. We document a dramatic increase over the past twenty years in the number of mutual funds participating in private markets and in the dollar value of these private firm investments. We evaluate several factors that potentially contribute to this trend: firms seeking extra capital to postpone public listing, mutual funds seeking higher risk-adjusted returns and initial public offering (IPO) allocations, and venture capitalists (VCs) seeking new investors to substantiate higher valuations. Results indicate that the first two factors play a significant role.
Metrics
Details
- Title
- Mutual fund investments in private firms
- Creators
- Sungjoung Kwon - Wayne State UniversityMichelle Lowry - Drexel UniversityYiming Qian - University of Connecticut
- Publication Details
- Journal of financial economics, v 136(2), pp 407-443
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business; Finance
- Web of Science ID
- WOS:000526811300006
- Scopus ID
- 2-s2.0-85074422481
- Other Identifier
- 991019167877904721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics