Argentum Centre for Private Equity
The Argentum Centre for Private Equity is a new research centre at the Norwegian School of Economics (NHH) in Bergen.
The centre’s mission is to produce objective research of the highest quality on all topics related to Nordic Private Equity.
It has received funding of NOK 7.5 million from members of the Norwegian Private Equity industry, including Argentum Fondsinvesteringer, BA-HR, Energy Ventures, Hitec Vision, Northzone, Norvestor and PwC.
To support its mission and to ensure its academic independence, the centre has established an advisory board of world-class researchers on Private Equity consisting of Professor Yael Hochberg (Kellogg School of Management), Professor Ulrich Hege (HEC Paris), and Professor Morten Sørensen (Columbia Business School).
What is Private Equity?
By definition, we are considering long-term equity investments in private or closely held firms. Typically either start-ups or mature firms (Buy out) receive funding from Private Equity firms. Past examples of firms that have received Venture Capital financing include Apple, Facebook, Google, Skype, Stepstone, and Spotify. Firms that have received Buyout funding include RjR Nabisco and Kongsberg Automotive.
Private Equity (PE) works as an alternative source of capital for firms. One main difference is that a firm pays a dividend rather than interest to a bank. Also, shareholders receive voting rights on the firm’s shareholder meeting. However, in particular in VC financing, investors often do not buy the whole firm or even hold a majority in the firm’s shareholder meeting.
Why do we need Private Equity Research?
Private Equity is a relatively new development in both Norway and Europe, but it has had a large impact on society.
Researchers have just begun to scratch the surface on Private Equity research. Much lies ahead and we firmly believe that the Argentum Private Equity Centre at NHH will contribute to answer important questions in the field.
