Syndicated Investing in Private Equity and Venture Capital Industry: Comparing BRICS

Lucas V.B. Martins

Abstract


Objective. This article characterizes and compares the networks structure formed by Managing Organizations (GOs) Private Equity and Venture Capital (PE&VC) that co-invested in the so called BRICS countries.
Methodology. The methodology used consists of PE or VC transactions with target companies based on the BRICS and involving more than one investor, or “syndicated investing”, between 1992 and 2013.
Findings. The analysis revealed that the social structure in these countries is highly clustered, showing the existence of small worlds in all markets studied, yet under different intensities. This type of structure stimulates the flow of information impacting access to business opportunities. The results suggest that, when dealing with networks of PE&VC investors, one should consider the particularities of BRICS, which are not homogeneous from the perspective of network analysis.
Limitations. This study considers only data from transactions originated and the effect known as BRICS.
Originality/Value. This article offers unique contribution in that it explores Syndicated Investing in understudied markets, employing a methodology that provides new results.

 

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Keywords


Syndicated Investing; Private Equity; Venture Capital; BRICS; Social Networks

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DOI: https://doi.org/10.15194/jofi_2015.v1.i1.8

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