Open AccessCreating value in investments with the use of private equity funds
Author(s) -
Olga Mikołajczyk,
Bartosz Owedyk
Publication year - 2020
Publication title -
journal of management and financial sciences
Language(s) - English
Resource type - Journals
eISSN - 2657-5612
pISSN - 1899-8968
DOI - 10.33119/jmfs.2020.40.1
Subject(s) - private equity , private equity firm , private equity fund , value (mathematics) , equity (law) , business , equity value , club deal , order (exchange) , economics , finance , equity capital markets , private equity secondary market , private investment in public equity , financial economics , debt , political science , machine learning , debt levels and flows , external debt , computer science , law
The influence of the private equity sector on the contemporary economy is quite significant. This is why the present paper attempts to examine mechanisms private equity investors apply in order to increase the value of their investments. The literature review has identified the most fundamen- tal elements of creating value on the basis of empirical, academic studies that verified hypotheses regarding the influence of particular mechanisms on the process of value creation in private equity investments. This paper is divided into five parts that describe the elements of the investment pro- cess, research into value creation, financial arbitration, as well as direct and indirect mechanisms of creating investment value. The paper is mainly based on the review of foreign-language literature.