Syndication, which is the common financing of a project or an investment by several capital providers, is a long existing phenomenon that plays a central role in many segments of the financial market (e.g. credit business, reinsurance, underwriting or private equity and venture capital financing). Without syndication many of these markets, which are decisive for a developed economy, could not themselves develop so rapidly. The expansion of new financing instruments would be substantially more difficult. Hereby, the dynamic aspect of the syndication, namely learning, the transmission and the diffusion of know-how between the syndication partners, appears fundamental and therefore is the focus of the theoretical analysis. How does the joint financing of a project (or a company) develop as time passes? Which experience and learning effects arise? The results of the theoretical analysis are examined empirically using the European and primarily German venture capital industry as an example. This industry is particularly well suited for the planned investigation because syndication occurs frequently there. Moreover, the European market offers the advantage of a very heterogeneous structure of venture capital firms regarding their experience. For these reasons, an investigation of the dynamics of the syndication structures is possible.

Selected Publications

Articles in Refereed Journals

Tykvova, Tereza (2007), Who Chooses Whom? Syndication, Skills and Reputation, Review of Financial Economics 16(1), 5-28.

Discussion and Working Papers

Tykvova, Tereza and Andrea Schertler (2006), Rivals or Partners? Evidence from Europe's International Private Equity Deals, ZEW Discussion Paper No. 06-091, Mannheim. Download

Project duration

01.03.2005 - 30.06.2008

Project members

Prof. Dr. Uwe Walz (Coordinator)
Prof. Dr. Tereza Tykvova