Investing in Private Equity in Brazil

ABSTRACT We consider the problem of selecting private equity funds for investment in Brazil. The proposed methodology is based on multi-criteria decision-making. Real data obtained from one of the largest pension funds in Brazil is used to illustrate a practical application of the methodology when s...

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Bibliographic Details
Main Authors: Antônio Marcos Duarte Junior, Luiz Carlos Barbosa Medeiros
Format: Article
Language:English
Published: FUCAPE Business School 2016-01-01
Series:BBR: Brazilian Business Review
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Online Access:http://www.redalyc.org/articulo.oa?id=123047026003
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Summary:ABSTRACT We consider the problem of selecting private equity funds for investment in Brazil. The proposed methodology is based on multi-criteria decision-making. Real data obtained from one of the largest pension funds in Brazil is used to illustrate a practical application of the methodology when selecting investments among eleven private equity funds available in the local financial market. The multi-criteria method TOPSIS is adopted with a total of twenty two criteria to order the investment alternatives. A sensitivity analysis is also presented. The methodology proposed allows a standardized decision-making process, facilitating the process of selecting private equity funds for investment in Brazilian financial markets.
ISSN:1807-734X