Managing Diversified Portfolios [electronic resource] : What Multi-Business Firms Can Learn from Private Equity /
Klier, Daniel O.author.
Two trends recently dominated the corporate landscape: the success of Private Equity as a major force in the market for corporate control and the pressure on diversified companies to refocus. Private Equity firms have experienced unrivaled growth with investments in broadly diversified business portfolios, while multi-business firms have come under pressure from capital markets to divest unrelated activities. Therefore, one can only wonder what traditional multi-business firms can learn from Private Equity. This study investigates Private Equity portfolio diversification, management models, and the opportunities for multi-business firms to apply the Private Equity toolbox. Following a comprehensive analysis of the relationship between diversification and performance, the study profiles Private Equity management models and links each model with performance. The study closes by proposing ways for multi-business firms to apply Private Equity key success factors in a corporate environment.
Description based upon print version of record.
Includes bibliographical references (p. 273-294).
Introduction -- Research Motivation -- Research Objective -- Structure of Dissertation -- Diversification in Corporations -- Definition of Diversification -- Overview of Academic Research on Corporate Diversification -- Diversification/Performance -- Managing Diversified Portfolios -- Introduction to the Private Equity Industry and the Role of Diversification -- Overview of the Private Equity Industry -- Profile of the Leveraged Buyout Segment -- Diversification in Private Equity -- Comparison of Private Equity Firms and Diversified Corporations -- General Research Design -- Starting Position in Academic Literature -- Direction of Research -- Empirical Research Design -- Empirical Part I – Diversification/Performance -- Hypotheses -- Methodology -- Empirical Results -- Discussion of Results -- Empirical Part II – Managing Diversified Portfolios -- Exploratory Framework -- Methodology -- Empirical Results -- Discussion -- Conclusion/Outlook -- Implications for Private Equity Managers -- Implications for Investors/Corporate Managers.
Two trends recently dominated the corporate landscape: the success of Private Equity as a major force in the market for corporate control and the pressure on diversified companies to refocus. Private Equity firms have experienced unrivaled growth with investments in broadly diversified business portfolios, while multi-business firms have come under pressure from capital markets to divest unrelated activities. Therefore, one can only wonder what traditional multi-business firms can learn from Private Equity. This study investigates Private Equity portfolio diversification, management models, and the opportunities for multi-business firms to apply the Private Equity toolbox. Following a comprehensive analysis of the relationship between diversification and performance, the study profiles Private Equity management models and links each model with performance. The study closes by proposing ways for multi-business firms to apply Private Equity key success factors in a corporate environment.
Leadership.
Finance.
Business.
Management science.
Business Strategy/Leadership.
Finance, general.
Business and Management, general.
Contributions to Management Science