Prof. Raviraj Gohel has co-authored a research paper which has been published by Institutional Investor Journals,2016 and also by IUP journal of applied finance, 2015. The in-depth research on the above topic, has given lots of insights, which includes investigates factors driving abnormal returns in private equity funds in India from 2007 to 2012. In the research they have found that skill factors such as type of exit route, holding period, size of investment, stage of investment, and type of industry significantly affect abnormal returns of private equity funds.In addition, market factors such as investment year, entry and exit value of S&P CNX Nifty, and market return during the period of the deal as well as a fund’s structure also drive abnormal returns in private equity funds.
They have concluded the paper in these three parameters
- Stage of investment and the types of Industry
- Sponsor, and exit style, as well as holding period and
- Type of exit route jointly influence abnormal returns in private equity funds.