PT  - JOURNAL ARTICLE
AU  - Ajusal Sugathan
AU  - Abhishek Baid
TI  - Private Equity Decision Making Using a Risk-Weighted<br/>Optimal Decision-Making Paradigm and Neural<br/>Networks
AID  - 10.3905/jpe.2013.16.3.015
DP  - 2013 May 31
TA  - The Journal of Private Equity
PG  - 15--18
VI  - 16
IP  - 3
4099  - https://pm-research.com/content/16/3/15.short
4100  - https://pm-research.com/content/16/3/15.full
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