DEVELOPMENT OF THE SECONDARY MARKET AS NEW SOURCE OF LIQUIDITY FOR VENTURE CAPITAL AND PRIVATE EQUITY FUNDS
Abstract
The aim of this paper is to present secondary market as new source for liquidity for venture capital funds as IPO transactions tend to be less ava- ilable for smaller companies. Changing trend on IPO market especially in US and Europe has brought the question on exit possibilities for venture capital funds as well as for their fundraising. Emerging of the secondary market hel- ped the investor to maintain liquidity and enable small companies to retain financing form venture capital funds. This paper analyse the cause of the se- cond market development and discusses its benefits.References
Burnstein, D., Schwerin S., Inside the growing secondary market for venture capital asset, Millenium Technology Value Partners.
Chemmanur T. J., Management quality, venture capital backing, and initial public offering, SSRN, New York, March 2012.
Cotton R. The benefits of secondary fund in a private equity portfolio, CTC Consulting, New York 2012.
European Venture Capital Association Yearbooks 2000-2013.
Gompers P., Lerner J., The Venture Capital cycle, The MIT Press, 1999.
Hertzel M. G., Huson M. R. Parrino R., Public market staging: The ti- ming of capital infusion in newly public firms, Journal of Finance Economics, Volume 106, October 2012.
Ibrahim D. M., The new exit in venture capital, 65 Vand. L. Rev. 1 2012.
Mendoza J. M, Vermeulen E. P. M., The new venture capital cycle, The importance of private secondary market liquidity, Topics in Law and Economy, 2011.
National Venture Capital Association Yearbooks 2000-2013.
The private equity secondaries market, PEI Media, London 2008
White paper – private equity secondaries, Capital Dynamics, April 2013.
Zasepa P., Venture capital – sposoby dezinwestycji, CEDEWU, War- saw 2010.
Abstract views: 359 PDF Downloads: 284
