Drivers Of Private Equity Fundraising, Evidence From European Countries

This paper aims to identify the drivers of private equity fundraising in Europe for years between 1994 and 2006. Since different investors have different motives underlying the investment activities, which may affect their investment behaviors, this paper separates private equity investor into three main groups and establishes different models to incorporate their motives. Empirical results show strong relationship between fundraising level and motives: profit seekers are more sensitive to drivers related to the return of this type of investment while strategic seekers act positively on the possible technology opportunities. The behavior of public investors doesn't show any clear evidence of "bridging the equity gap" or "adjusting the surplus", which reflects the complexity of public policy decision making.