Percorrer por autor "Bauck, Thomas David"
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- Do investors pay for impact? : an empirical analysis of valuations in private equity and venture capitalPublication . Bauck, Thomas David; Buchner, AxelIn a capital market that is increasingly shaped by concerns around sustainability, impact investing promises to deliver measurable social or environmental benefits alongside a financial return. But do investors in private equity and venture capital actually pay for impact, or is it just a branding tool? This study provides the first large-scale, valuation-based evidence that investors are willing to pay a premium for impact in private markets. Using a unique dataset of 160 “impact” deals matched to a control group of 3,500+ private transactions, I employ propensity score matching and doubly robust regression to isolate the 8impact premium9. Results reveal that impact firms are valued 90-99% higher than comparable non-impact firms, even after controlling for industry, geography, and deal characteristics. This premium is higher for social impact over environmental impact, larger in emerging markets than developed markets and disappears in cross-border deals, suggesting that investor preferences are highly context-dependent. The results challenge the view that impact is a non-financial phenomenon and show that, in practice, social and environmental value is priced into private equity. For fund managers, institutional investors and policymakers, this work offers granular insights and guidance into impact investing in private markets.