The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies

The present article seeks to analyze the legacy and its persistence over time in terms of financing and operational policies and financial performance, of companies invested by Private Equity and Venture Capital funds (PE/VC). The PE/VC industry is characterized by the function of identifying compan...

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Autores principales:	Bianca Piloto Sincerre, Joelson Sampaio, Rubéns Famá, Eduardo .S Flores
Formato:	article
Lenguaje:	EN PT
Publicado:	FUCAPE Business School 2019
Materias:	venture capital operational performance financial performance initial public offering of shares Business HF5001-6182
Acceso en línea:	https://doaj.org/article/e815977c95ac48949283ec26381c3dbc
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spelling	oai:doaj.org-article:e815977c95ac48949283ec26381c3dbc2021-11-11T15:48:07ZThe Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies1807-734X10.15728/bbr.2019.16.1.6https://doaj.org/article/e815977c95ac48949283ec26381c3dbc2019-01-01T00:00:00Zhttp://www.redalyc.org/articulo.oa?id=123058781006https://doaj.org/toc/1807-734XThe present article seeks to analyze the legacy and its persistence over time in terms of financing and operational policies and financial performance, of companies invested by Private Equity and Venture Capital funds (PE/VC). The PE/VC industry is characterized by the function of identifying companies with large return potentials and that grow arithmetically – due to capital constraints – to provide adequate and necessary sources of capital and experience for exponential growth. In this study, we used four measures that relate to companies’ financial policies and their persistence over time: i) cash & equivalents; ii) leverage; iii) Return on Assets (ROA); and iv) sales growth. The results suggest that PE / VC invested companies imply higher levels of cash & equivalents and are associated with a lower level of leverage during the first 5 years after the IPO. In addition, companies financed by PE/VC funds show higher profitability and higher sales growth compared to non-invested companies in the short term, i.e., in the first 3 years after the IPO.Bianca Piloto SincerreJoelson SampaioRubéns FamáEduardo .S FloresFUCAPE Business Schoolarticleventure capitaloperational performancefinancial performanceinitial public offering of sharesBusinessHF5001-6182ENPTBBR: Brazilian Business Review, Vol 16, Iss 1, Pp 87-101 (2019)
institution	DOAJ
collection	DOAJ
language	EN PT
topic	venture capital operational performance financial performance initial public offering of shares Business HF5001-6182
spellingShingle	venture capital operational performance financial performance initial public offering of shares Business HF5001-6182 Bianca Piloto Sincerre Joelson Sampaio Rubéns Famá Eduardo .S Flores The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies
description	The present article seeks to analyze the legacy and its persistence over time in terms of financing and operational policies and financial performance, of companies invested by Private Equity and Venture Capital funds (PE/VC). The PE/VC industry is characterized by the function of identifying companies with large return potentials and that grow arithmetically – due to capital constraints – to provide adequate and necessary sources of capital and experience for exponential growth. In this study, we used four measures that relate to companies’ financial policies and their persistence over time: i) cash & equivalents; ii) leverage; iii) Return on Assets (ROA); and iv) sales growth. The results suggest that PE / VC invested companies imply higher levels of cash & equivalents and are associated with a lower level of leverage during the first 5 years after the IPO. In addition, companies financed by PE/VC funds show higher profitability and higher sales growth compared to non-invested companies in the short term, i.e., in the first 3 years after the IPO.
format	article
author	Bianca Piloto Sincerre Joelson Sampaio Rubéns Famá Eduardo .S Flores
author_facet	Bianca Piloto Sincerre Joelson Sampaio Rubéns Famá Eduardo .S Flores
author_sort	Bianca Piloto Sincerre
title	The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies
title_short	The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies
title_full	The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies
title_fullStr	The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies
title_full_unstemmed	The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies
title_sort	impact of private equity and venture capital funds on post-ipo operational and financial performance in brazilian invested companies
publisher	FUCAPE Business School
publishDate	2019
url	https://doaj.org/article/e815977c95ac48949283ec26381c3dbc
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The Impact of Private Equity and Venture Capital Funds on post-IPO Operational and Financial Performance in Brazilian invested companies

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