The syndication of venture capital deals: Buy-outs and buy-ins

This paper analyses the neglected issue of syndication using a sample of 1,999 venture backed UK management buy-outs and buy-ins. Using legit analysis with EM imputation of missing values, the paper identifies investee risk characteristics, venture capital characteristics and control factors which influence the syndication decision, achieving an overall 89% correct classification rate. The study also analyses the intensity of syndication networks and finds evidence of greater intensity than for the US capital market.