Advertisement

Empirical Part I: Diversification and Performance

  • Daniel O. Klier
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Some private equity firms may well find that they have bitten off more than they can chew. But it would be wrong to assume that the challenge private equity firms pose to the public equity model is about to ease

Andreas Beroutsos, Conor F. Kehoe,

Financial Times

The first empirical part of this study concentrates on the question how diversification affects performance, in private equity firms on a standalone basis and in comparison to public corporations. Many critics of the private equity phenomenon doubt the performance advantage of PEs due to the conglomerate structure of their investment portfolios, which they have accumulated throughout the past boom years of buyouts. Others on the contrary believe in the superiority of private equity in managing diversified investment portfolios. Although this controversy has been subject to public discussion in recent years, academic research has so far failed to shed light on the performance differences of private equity firms and public...

Keywords

Private Equity Investment Portfolio Industry Group Herfindahl Index Portfolio Company 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  1. 1.BerlinGermany

Personalised recommendations