Lead Investors Signal an Investment Opportunity? Evidence in the Private Equity Market in Emerging and Global Countries

• Grant number: 24/05297-6
• Support Opportunities: Regular Research Grants
• Start date: February 01, 2025
• End date: January 31, 2026
• Field of knowledge: Applied Social Sciences - Administration - Business Administration
• Principal Investigator: Richard Saito
• Grantee: Richard Saito
• Host Institution: Escola de Administração de Empresas de São Paulo (EAESP). Fundação Getúlio Vargas (FGV). São Paulo , SP, Brazil

Abstract

The Private Equity (PE) industry is very restricted, and the investment signal of a given investor can influence new investors to enter future funds in that same manager (GP). Thus, this study will analyze the possible relationship between the presence of large PE investors (lead investors) and market dynamics. It has two objectives, first, to analyze the persistence of the returns of these lead investors and, second, to analyze whether the presence of these investors attracts new investors to subsequent funds managed by this same GP. The Preqin© database will be used to arrive at the investor level of each fund, an approach rarely used in PE. The topic is relevant due to the gain in importance of investments in PE, but also due to the few studies focused on this topic. (AU)