Publications

04 Feb 2020
News

Why Backstage Capital Invests in “Underestimated” Entrepreneurs

September 2017
Article

The Real Effects of Capital Controls: Firm-Level Evidence from a Policy Experiment

By: Laura Alfaro, Anusha Chari and Fabio Kanczuk

Emerging-market governments adopted capital control taxes to manage the massive surge in foreign capital inflows in the aftermath of the global financial crisis. Theory suggests that the imposition of capital controls can drive up the cost of capital and curb... View Details

Keywords: Capital Controls; Discriminatory Taxation; International Investment Barriers; Exports; Debt; Cost of Capital; Taxation; Investment; Borrowing and Debt; Equity; Brazil

04 Feb 2020
Cold Call Podcast

Why Backstage Capital Invests in ‘Underestimated’ Entrepreneurs

Keywords: Financial Services

2022
Working Paper

Racial Diversity in Private Capital Fundraising

By: Johan Cassel, Josh Lerner and Emmanuel Yimfor

Black- and Hispanic-owned funds control a very modest share of assets in the private capital industry. We find that the sensitivity of follow-on fundraising to fund performance is greater for minority-owned groups, particularly for underperforming groups. We... View Details

Keywords: Buyouts; Capital Formation; Minorities; Venture Capital; Minority-owned Businesses; Race; Diversity; Investment Funds; Financial Services Industry

October 2012 (Revised September 2015)
Case

Altoona State Investment Board: July 2012

By: Josh Lerner and Nathaniel Burbank

Considers the decision faced by state pension fund manager Rod Calhoun as he decides whether to invest $200 million in Bain Capital's eleventh global buyout fund: Bain Capital Fund XI. For the fund, Bain was offering its limited partners a choice between three... View Details

Keywords: Management Fees; Bain Capital; Venture Capital; Private Equity; Leveraged Buyouts; Banking Industry; Boston

Educators

2016
Article

Organizational Decision-Making and Information: Angel Investments by Venture Capital Partners

By: Andy Wu

We study information aggregation in organizational decision-making for the financing of entrepreneurial ventures. We introduce a formal model of voting where agents face costly tacit information to improve their decision quality. Equilibrium outcomes suggest a... View Details

Keywords: Entrepreneurial Finance; Angel Investors; Organization Design; Voting; Group Decision-making; Information; Strategy; Organizations; Entrepreneurship; Decision Making; Financing and Loans

May 2019
Background Note

Sources of Capital for Black Entrepreneurs

By: Steven Rogers, Stanley Onuoha and Kayin Barclay

This note was written primarily for black entrepreneurs in order to help them raise capital. The second objective was to recognize the capital providers who are part of the solution to the problem of less than 2% of private equity capital and 1.7% of debt capital in... View Details

Keywords: Black Entrepreneurs; Access To Capital; Capital; Entrepreneurship; Prejudice and Bias

Educators

12 Jan 2015
News

Good Investments

by taking the plunge we are going to show others and to help build the sector in such a way that more mainstream capital will come in.’” “In Silicon Valley terms,” says Michael Chu, “we need the people who were View Details

Keywords: Dan Morrell; impact investing; ideas; Securities, Commodities, and Other Financial Investments; Securities, Commodities, and Other Financial Investments

September 2023
Article

Customer Churn and Intangible Capital

By: Scott R. Baker, Brian Baugh and Marco Sammon

Intangible capital is a crucial and growing piece of firms’ capital structure, but many of its distinct components are difficult to measure. We develop and make available several new firm-level metrics regarding a key component of intangible capital – firms’ customer... View Details

Keywords: Customer Base; Transaction Data; Customer Churn; Intangible Capital; Capital Structure; Measurement and Metrics; Customers

SSRN

May 2005
Article

Foreign Direct Investment and the Domestic Capital Stock

By: Mihir A. Desai, C. Fritz Foley and James R. Hines Jr.

Keywords: Foreign Direct Investment; Capital; Stocks

26 Jun 2014
News

StarVest Founder on Hottest Venture Capital Technology Investments

Keywords: StarVest; Securities, Commodities, and Other Financial Investments; Securities, Commodities, and Other Financial Investments

Web

Investment Management and Capital Markets - Course Catalog

HBS Course Catalog Investment Management and Capital Markets Course Number 1446 Professor Luis Viceira Associate Professor Emil Siriwardane Fall; Q1Q2; 3.0 credits 28 sessions Exam IMCM is suitable for all... View Details

2007
Chapter

Labor Market Regulations and European Venture Capital Investment

By: Ant Bozkaya and William R. Kerr

Keywords: Venture Capital; Investment; Human Capital; Governing Rules, Regulations, and Reforms; Government and Politics; Business and Government Relations; Europe

July 2019
Supplement

Omidyar Network's Investment Decisions: MicroEnsure and Lenddo

By: Vikram S Gandhi

A team of investors at Omidyar Network explore two different investment possibilities in the budding financial inclusion space using their investment framework to consider capital alternatives available for both investments, each of which carries highly divergent... View Details

Keywords: Impact Investing; Micro Finance; Investment; Investment Return; Investment Activism; Investment Portfolio; Microfinance; Decision Choices and Conditions; India; Philippines

Article

Short-Termism and Capital Flows

By: Jesse M. Fried and Charles C.Y. Wang

During 2007–2016, S&P 500 firms distributed to shareholders $7 trillion via buybacks and dividends, over 96% of their aggregate net income, prompting claims that "short-termism" is impairing firms' ability to invest and innovate. We show that, when taking into account... View Details

Keywords: Short-termism; Quarterly Capitalism; Share Buybacks; Open Market Repurchases; Dividends; Equity Issuances; Seasoned Equity Offerings; Equity Compensastion; Acquisitions; Payout Policy; Capital Flows; Capital Distribution; Working Capital; Business and Shareholder Relations; Acquisition

January 2019 (Revised November 2019)
Case

Ajeej Capital: Investing in Emerging Markets

By: Luis M. Viceira and Eren Kuzucu

In October 2007, Tarek Sakka and Fouad Dajani launched Ajeej Capital, the first independent investment advisory in the MENA region. Fittingly named ajeej, an Arabic word that translates to “growth and propagation in a chaotic setting,” the firm’s AUM grew from $20... View Details

Keywords: Security Selection; Investments; Growth; Culture; UAE; Finance; Asset Management; Emerging Markets; Capital Markets; Investment; Growth Management; Risk Management; Middle East; Saudi Arabia; Dubai; United Arab Emirates; Egypt; North Africa

Educators

March 2001 (Revised August 2001)
Exercise

Ginny's Restaurant: An Introduction to Capital Investment Valuation

An individual is considering the development of a new restaurant. To make the decision, she uses NPV analysis to determine whether she should undertake the investment, and, if so, the optimal size of the investment. View Details

Keywords: Valuation; Decision Making; Business Startups