RT Journal Article
SR Electronic
T1 Private Equity Decision Making Using a Risk-Weighted<br/>Optimal Decision-Making Paradigm and Neural<br/>Networks
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 15
OP 18
DO 10.3905/jpe.2013.16.3.015
VO 16
IS 3
A1 Ajusal Sugathan
A1 Abhishek Baid
YR 2013
UL https://pm-research.com/content/16/3/15.abstract
AB Private equity (PE) fund managers constantly face the problem of having an adequate selection of firms to invest in. Optimal investment decisions are of high importance to PE funds because there is a greater degree of risk associated with them than with traditional investments, which tend to be more objective in terms of risk–return profiles. This article analyzes and details the various factors that affect the investment decisions of PE funds and reveals two models to determine the optimal investment candidate from a set of probable candidates: a risk-weighted fuzzy optimal investment model and a neural-network-based optimal investment model.TOPICS: Private equity, portfolio construction, big data/machine learning, risk management