The effect of general partner experience on portfolio company growth

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School of Business | Bachelor's thesis
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Date
2020
Major/Subject
Mcode
Degree programme
Rahoitus
Language
en
Pages
3 + 21
Series
Abstract
In this thesis, I study the relation between private equity fund managers' experience and the growth of their portfolio companies. I use a sample of 337 buyouts and venture capital-backed portfolio companies of Finnish investors. In this study, I refer to previous literature, such as Kaplan and Schoar (2005), which suggests that investors' experience measured by the fund sequence number implies better fund performance. My study is a new addition to the existing literature, as it studies one part of the portfolio company's performance – its growth rate. The findings suggest that the general partner's experience positively impacts the compounded annual growth rate of revenue and personnel of the portfolio company.
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Thesis advisor
Luotonen, Niilo
Keywords
private equity, buyout, venture capital, growth
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