THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs
The internationalization of the portfolio company is a key strategy used by private equity (PE) investors to create value and produce returns. In recent years, the focus on the strategies for value-creation through operational improvement has become essential to achieve the exponential growth requir...
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| Format: | Article |
| Language: | English |
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World Scientific Publishing
2021-12-01
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| Series: | Journal of Financial Management, Markets and Institutions |
| Subjects: | |
| Online Access: | https://www.worldscientific.com/doi/10.1142/S2282717X21500079 |
| _version_ | 1818284040383365120 |
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| author | ANDREA ODILLE BOSIO ANNA GERVASONI FRANCESCO BOLLAZZI |
| author_facet | ANDREA ODILLE BOSIO ANNA GERVASONI FRANCESCO BOLLAZZI |
| author_sort | ANDREA ODILLE BOSIO |
| collection | DOAJ |
| description | The internationalization of the portfolio company is a key strategy used by private equity (PE) investors to create value and produce returns. In recent years, the focus on the strategies for value-creation through operational improvement has become essential to achieve the exponential growth required to the portfolio company, given the low multiples and the market risk of leverage. In this paper, we define the key types of contribution that a PE investor can provide in order to support the internationalization process and their effects on the portfolio company’s performance. The research is based on a survey administered to 47 PE fund managers, which covers 156 deals involving Italian companies. The results offer insight into the contribution to the corporate governance, strategy and management that PE provides in addition to the monetary support. The findings show that the non-financial support given to the portfolio companies has a positive impact on the performance and that the most impactful contribution the PE can give is the support to the relational network when the company strategy involves a foreign direct investment. |
| first_indexed | 2024-12-13T00:46:29Z |
| format | Article |
| id | doaj.art-307c62346fe24dd083b0460f2d2b52f2 |
| institution | Directory Open Access Journal |
| issn | 2282-717X |
| language | English |
| last_indexed | 2024-12-13T00:46:29Z |
| publishDate | 2021-12-01 |
| publisher | World Scientific Publishing |
| record_format | Article |
| series | Journal of Financial Management, Markets and Institutions |
| spelling | doaj.art-307c62346fe24dd083b0460f2d2b52f22022-12-22T00:05:01ZengWorld Scientific PublishingJournal of Financial Management, Markets and Institutions2282-717X2021-12-01090210.1142/S2282717X21500079THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEsANDREA ODILLE BOSIO0ANNA GERVASONI1FRANCESCO BOLLAZZI2Università Carlo Cattaneo – LIUC, ItalyUniversità Carlo Cattaneo – LIUC, ItalyUniversità Carlo Cattaneo – LIUC, ItalyThe internationalization of the portfolio company is a key strategy used by private equity (PE) investors to create value and produce returns. In recent years, the focus on the strategies for value-creation through operational improvement has become essential to achieve the exponential growth required to the portfolio company, given the low multiples and the market risk of leverage. In this paper, we define the key types of contribution that a PE investor can provide in order to support the internationalization process and their effects on the portfolio company’s performance. The research is based on a survey administered to 47 PE fund managers, which covers 156 deals involving Italian companies. The results offer insight into the contribution to the corporate governance, strategy and management that PE provides in addition to the monetary support. The findings show that the non-financial support given to the portfolio companies has a positive impact on the performance and that the most impactful contribution the PE can give is the support to the relational network when the company strategy involves a foreign direct investment.https://www.worldscientific.com/doi/10.1142/S2282717X21500079Private Equityalternative investmentsSMEsinternationalizationFDIItaly |
| spellingShingle | ANDREA ODILLE BOSIO ANNA GERVASONI FRANCESCO BOLLAZZI THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs Journal of Financial Management, Markets and Institutions Private Equity alternative investments SMEs internationalization FDI Italy |
| title | THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs |
| title_full | THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs |
| title_fullStr | THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs |
| title_full_unstemmed | THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs |
| title_short | THE STRATEGIC ROLE OF PRIVATE EQUITY IN THE INTERNATIONALIZATION OF ITALIAN SMEs |
| title_sort | strategic role of private equity in the internationalization of italian smes |
| topic | Private Equity alternative investments SMEs internationalization FDI Italy |
| url | https://www.worldscientific.com/doi/10.1142/S2282717X21500079 |
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