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Investing in Private Equity in Brazil

Author

Listed:
  • Antônio Marcos Duarte Junior

    (IBMEC – RJ / University os State of Rio de Janeiro - UERJ)

  • Luiz Carlos Barbosa Medeiros

    (IBMEC – RJ / Assistance and Social Security Foundation of BNDES - FAPES)

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.

Suggested Citation

  • Antônio Marcos Duarte Junior & Luiz Carlos Barbosa Medeiros, 2016. "Investing in Private Equity in Brazil," Brazilian Business Review, Fucape Business School, vol. 13(5), pages 51-84, September.
    • Handle: RePEc:bbz:fcpbbr:v:13:y:2016:i:5:p51-84
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    References listed on IDEAS

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