Portfolio Strategies of Private Equity Firms

Foreword

Acknowledgements

Table of Contents

List of Figures

List of Tables

List of Abbreviations

Chapter 1 Introduction

1.1 Portfolio strategies of private equity .rms

1.2 Objective of thesis

1.3 Basics of private equity .nancing

1.4 Structure of thesis

Chapter 2 Related literature and previous research

2.1 Introduction

2.2 Return and risk of private equity investing

2.3 Portfolio strategies and optimal structure of private equity funds

2.4 Summary: research gaps and contribution of thesis

Chapter 3 Optimal level of diversi.cation in private equity funds

3.1 Introduction

3.2 Modern portfolio theory

3.3 Optimal number of investment clusters

3.4 Summary: implications for empirical analysis

Chapter 4 Construction of data set and variables

4.1 Introduction

4.2 Data sets used by other authors

4.3 Description of data set used in this thesis

4.4 Description of variables

4.5 Summary: advantage and drawback of data set

Chapter 5 Choice of portfolio strategies by private equity . rms

5.1 Introduction

5.2 Data and key variables

5.3 ‘Naive’ diversi.cation across portfolio companies

5.4 ‘Systematic’ diversi.cation across .nancing stages, industries, and countries

5.5 ‘Dynamic’ diversi.cation across time

5.6 Summary: importance of market conditions and . rm characteristics

Chapter 6 Performance of private equity funds: does diversi . cation matter?

6.1 Introduction

6.2 Impact of diversi.cation on private equity funds’ performance

6.3 Descriptive analysis

6.4 Multivariate analysis

6.5 Summary: two basic strategies to increase rate of return

Chapter 7 Summary

Bibliography

Appendix A Appendix chapter 3

A.1 Expected rate of return and risk of an investment cluster

A.2 Risk of a fund

A.3 Optimal number of investment clusters

A.4 Comparative statics

Appendix B Appendix chapter 4

Appendix C Appendix chapter 5

Appendix D Appendix chapter 6