The size of venture capital and private equity fund portfolios
Publication
, Journal Article
Bernile, G; Cumming, D; Lyandres, E
Published in: Journal of Corporate Finance
September 1, 2007
We propose a model that examines the optimal size of venture capital and private equity fund portfolios. The relationship between a VC and entrepreneurs is characterized by double-sided moral hazard, which causes the VC to trade off larger portfolios against lower values of portfolio companies. We analyze the structural relations between the VC's optimal portfolio structure and entrepreneurs' and VC's productivities, their disutilities of effort, the value of a successful project, and the required initial investment in a venture. We also test the model's predictions using a small proprietary dataset collected through a survey targeted to VC and private equity funds worldwide. © 2007 Elsevier B.V. All rights reserved.
Duke Scholars
Published In
Journal of Corporate Finance
DOI
ISSN
0929-1199
Publication Date
September 1, 2007
Volume
13
Issue
4
Start / End Page
564 / 590
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
Citation
APA
Chicago
ICMJE
MLA
NLM
Bernile, G., Cumming, D., & Lyandres, E. (2007). The size of venture capital and private equity fund portfolios. Journal of Corporate Finance, 13(4), 564–590. https://doi.org/10.1016/j.jcorpfin.2007.04.004
Bernile, G., D. Cumming, and E. Lyandres. “The size of venture capital and private equity fund portfolios.” Journal of Corporate Finance 13, no. 4 (September 1, 2007): 564–90. https://doi.org/10.1016/j.jcorpfin.2007.04.004.
Bernile G, Cumming D, Lyandres E. The size of venture capital and private equity fund portfolios. Journal of Corporate Finance. 2007 Sep 1;13(4):564–90.
Bernile, G., et al. “The size of venture capital and private equity fund portfolios.” Journal of Corporate Finance, vol. 13, no. 4, Sept. 2007, pp. 564–90. Scopus, doi:10.1016/j.jcorpfin.2007.04.004.
Bernile G, Cumming D, Lyandres E. The size of venture capital and private equity fund portfolios. Journal of Corporate Finance. 2007 Sep 1;13(4):564–590.
Published In
Journal of Corporate Finance
DOI
ISSN
0929-1199
Publication Date
September 1, 2007
Volume
13
Issue
4
Start / End Page
564 / 590
Related Subject Headings
- Finance
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment