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| Field |
Value |
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| Title |
Analysing the criteria of private equity investment in South Africa
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| Creator |
Hamman, Albertus
Nel, Ines
Oberholzer, Merwe
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| Subject |
private equity investment; investment criteria; investment decision; institutional theory; South Africa
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| Description |
Orientation: Within the conceptual paradigm that the institutional environment may influence investment criteria, this study argues that South Africa has a unique socio-economic environment and matters such as black economic empowerment, corruption, redistribution of land and other related matters pose unique challenges to private equity investors.Research purpose: The purpose was to determine the critical criteria that present a challenge to private equity investment professionals when considering an investment in business ventures in South Africa.Motivation for the study: As far as can be established, similar research to identify and prioritise the investment criteria used by private equity investors has not been done or published in South Africa.Research approach/design and method: A literature review was conducted to develop qualitatively a 51-component questionnaire, which was quantitatively tested by a convenience sample of 44 registered private equity investment professionals in South Africa.Main findings: Descriptive statistical analysis revealed that the most important individual criteria component is the intention of co-shareholders. From a factor analysis, the most important factors are the internal and the external abilities of the fund manager to identify investment opportunities.Practical/managerial implications: The new prioritised investment decision-making criteria may aid potential target companies, wanting to attract funding from private equity investors, to organise themselves to become attractive investment opportunities.Contribution/value-add: A new prioritised list was developed to better understand how South African private equity investment professionals make investment decisions.
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| Publisher |
AOSIS
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| Contributor |
—
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| Date |
2021-04-26
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
—
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| Format |
text/html
application/epub+zip
text/xml
application/pdf
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| Identifier |
10.4102/jef.v14i1.608
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| Source |
Journal of Economic and Financial Sciences; Vol 14, No 1 (2021); 15 pages
2312-2803
1995-7076
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| Language |
eng
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| Relation |
https://jefjournal.org.za/index.php/jef/article/view/608/1215
https://jefjournal.org.za/index.php/jef/article/view/608/1213
https://jefjournal.org.za/index.php/jef/article/view/608/1214
https://jefjournal.org.za/index.php/jef/article/view/608/1212
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| Rights |
Copyright (c) 2021 Albertus Hamman, Ines Nel, Merwe Oberholzer
https://creativecommons.org/licenses/by/4.0
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