Mutual fund investments in private firms

• 成果类型: Article
• 署名作者: Kwon, Sungjoung; Lowry, Michelle; Qian, Yiming
• 署名单位: Wayne State University; Drexel University; University of Connecticut
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.10.003
• 发表日期: 2020
• 页码: 407-443
• 关键词: Private firm; Mutual fund; IPO

摘要

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. (C) 2019 Elsevier B.V. All rights reserved.