Divestment of Private Equity in Europe in the Years 2007–2013

Abstract

Using the data from the website of EVCA, the European Private Equity and Venture Capital Association, we provide an analysis of the divestment transactions made by Private Equity and Venture Capital in Europe in the period from 2007 to 2013. The purpose of the research is to verify whether the amount of divestments and the selection of exit strategies are influenced by the GDP growth rate of European Union and the performance of equity markets of European Union Member States. We also highlight the importance of divestment phase, because it is only through its success that venture capital and private equity firms can realize capital gains. The analysis has demonstrated a positive correlation between divestments realized in the period considered and the GDP growth rate of European Union, as well as between the amount of disposals made during the period analyzed and the development of the Eurostoxx50 index.