IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-02965469.html
   My bibliography  Save this paper

Corporate network embeddedness and the success of portfolio companies : evidence from the French private equity industry

Author

Listed:
  • Sana Elouaer-Mrizak

    (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique, ULCO - Université du Littoral Côte d'Opale)

  • Bulat Sanditov

    (IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

  • Donia Trabelsi

    (IMT-BS - DEFI - Département Droit, Economie et Finances - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], KIND - Dynamique des réseaux, de l'innovation et de la connaissance - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris])

Abstract

This paper examines the role that private equity (PE) networks play in the success of PE-backed firms in France over the period 1989–2016. We make the distinc-tion between corporate private equity (CPE) and independent private equity (IPE) firms, and we investigate whether the effect of the PE network on the success of portfolio firms varies between these two groups of investors. We show that port-folio firms backed by larger and more active PE firms are more likely to survive and make a successful exit. Further, we find that, in terms of the probability of success of their port-folio firms, French CPE firms do not systematically differ from their IPE counterparts. The network position of the investor matters—more central PE firms are more likely to bring their portfolio firms to a successful exit. However, our results also suggest that CPE and IPE firms may differ in terms of the effect of the firm's network position: being close to other investors is important for CPE firms but not for IPE firms.

Suggested Citation

  • Sana Elouaer-Mrizak & Bulat Sanditov & Donia Trabelsi, 2020. "Corporate network embeddedness and the success of portfolio companies : evidence from the French private equity industry," Post-Print hal-02965469, HAL.
    • Handle: RePEc:hal:journl:hal-02965469
    DOI: 10.3917/entre1.191.0061
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-02965469. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.