PT - JOURNAL ARTICLE AU - Benjamin Puche AU - Christoph Lotz TI - Private Equity Minority Investments AID - 10.3905/jpe.2015.18.4.046 DP - 2015 Aug 31 TA - The Journal of Private Equity PG - 46--55 VI - 18 IP - 4 4099 - https://pm-research.com/content/18/4/46.short 4100 - https://pm-research.com/content/18/4/46.full AB - In the maturing private equity industry, investments where the private equity fund owns a minority of the equity are gaining influence. They use different instruments for value creation than classic majority investments and involve other mechanisms of decision making. Therefore, understanding value creation in minority investments on a deal level is important. We find that overall returns of minority investments are below those of majority investments. Minority investments thus appear to offer a different type of risk–return relationship to broaden diversification for both general and limited partners.TOPICS: Private equity, portfolio construction, statistical methods, equity portfolio management