PT  - JOURNAL ARTICLE
AU  - Varun Sood
TI  - Investment Strategies in Private Equity
AID  - 10.3905/jpe.2003.320050
DP  - 2003 May 31
TA  - The Journal of Private Equity
PG  - 45--47
VI  - 6
IP  - 3
4099  - https://pm-research.com/content/6/3/45.short
4100  - https://pm-research.com/content/6/3/45.full
AB  - In the light of the huge capital inflows into Private Equity in the late nineties and until 2001, this article examines how and why it got out of sync. An analysis using these tools shows that the overhang in this sector is really concentrated in the hands of a few funds, who can support their operations for many years to come. With the objective of studying investment decisions using economic theory, It discusses whether Private Equity is really an investment asset class. It goes on to suggest that the asymmetrical information that characterises Private Equity requires the use of well known concepts of Adverse Selection and Moral Hazard to help understand the risk of the sector. The sector will recover, but this may be led by players who are much less known than the brand-name funds.