The attractiveness and danger of such a subject lies in the fact that specialized literature and examples are not abundant: the funds that actually used the stock market are counted on the fingers of one hand, and reflections on this topic are still in their infancy, due to the lack of examples for it filing and lack of perspective in support of her assumptions and conclusions. Is this still a theoretical field that is developing before our eyes, or, finally, is it just a random phenomenon that is destined to remain an exception?
Therefore, the task of the work is to determine the advantages and disadvantages. But in addition to the seductive dichotomy between advantages and disadvantages, it soon becomes clear that we are seeing, first of all, differences that turn out to be only advantages and disadvantages in the light of a certain context. Moreover, a topic that seems rather straightforward hides many specific situations that we will try to classify. In a developing segment, each company, each strategy is a special case that answers specific problems of this context.
This was probably one of the most interesting aspects of our work – to establish a typology in the course of our interviews and our thoughts, which, we hope, is an exhaustive one from the situations and tools implemented in financing venture capital. Although this diversity has greatly enriched our subject, it has also largely destroyed the relative unity that we originally envisioned, sometimes even questioning the legitimacy of talking about some radically different cases in the same study.
If we tried to maintain this heterogeneity of situations throughout this document, this is because we consider it primarily as a “sum”, a table that is as complete as possible of these strategies, in which most articles are grouped together. A rather offensive way under the sole name of “venture capital financing”.
Thus, it seemed to us that there are three completely different situations: – some funds indicate their management company, often according to the logic of transferring or evaluating the heritage of historical shareholders. – Others rely on government savings for co-investment funds with their historical funds to create pools of ongoing funding. – Finally, other investment companies included in the historical list are gradually reorienting to business. The first two situations, which are often considered together in newspaper articles, are radically different from each other, whether it is the motives or methods of these operations.
Finally, we had the ambition that this work does not contain a list of differences from the listing in the boring, even tedious inventory in Prévert: we also wanted to understand how and with what extent and with what consequences this phenomenon integrates the forms of capitalism into history. Is it a fashion phenomenon or a trend of the foundation? The emergence of a new class of assets or a simple intermediate, designed to remain an exception?
The subject invites us to discuss the “listing of private equity fund funds.” Under this simple expression is a multifaceted phenomenon and very diverse realities. The first typology could divide funds that used public offering into three categories: – Historical and relatively general investment companies, more or less present in the market. Although they participate in the phenomenon, they are not pure players.
The list of investment funds is mainly motivated by the prospect of a new fundraising regime: to collect more funds, evergreen (permanent), with new “pockets” of investors. – A list of management companies, which, in essence, solves issues related to assets of management teams: obtaining a more accurate assessment of the shares of partners in the management company and promoting their liquidity and transfer. If these three types of companies share a common sector and stock market, the problems they face are often diverse. Then we will try to emphasize the specifics of the various categories in relation to the various topics that we will discuss.
In this third step of the process, a venture capital company identifies companies that are seeking financing, which is part of its investment strategy, and that are willing to sell part of its capital in order to receive this financing. It is interesting to note that a venture capital company makes what is considered a “choice” to create a portfolio that matches its investment policy.