Published in «Russian Journal of Entrepreneurship»1 / 2019
DOI: 10.18334/rp.20.1.39711

Evaluation of the profitability of private equity funds in modern foreign econometric approaches

Musatova Mariya Mikhaylovna, Institute of Economics and Industrial Engineering, Siberian Branch of the Russian Academy of Sciences, Russia

Оценка доходности фондов прямых частных инвестиций в современных зарубежных эконометрических подходах - View in Russian

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Abstract:
The article analyzes the foreign approaches to the assessment of the profitability of private direct investment on the basis of econometric modeling that have developed in recent decades. The rapid growth of the global private direct investment industry (private equity, PE) began to face an overestimation of future revenues, a slowdown in the profitability of growing private direct investment funds, the need to fully exploit the competitive advantages of this type of investment, etc. The article considers the shortcomings of the use of traditional indicators of financial management to assess the profitability of PE, presents opposite points of view and their arguments on the relationship of profitability and the scale of growth of private equity funds, systematized the advantages of operating management in non-public companies by managers of PE, providing a higher yield compared to franchise schemes of doing business in the field, focused on the mass consumer of services. The critical analysis of these approaches is certainly relevant against the background of the planned recovery of the PE industry in Russia. The end of the recession, the stabilization of oil prices and the adaptation of the Russian economy to the sanctions regime strengthen investors' interests in Russian assets of non-public companies. It seems that against this positive background, Russian RE needs to present trends in profitability in developed RE markets with a history and vast experience, identified by econometric modeling.

Keywords:

econometric modeling, Economies of scale, investment projects, private equity funds, profitability

JEL-Classification: C10, C19, G34

Citation:
Musatova M.M. (2019). Evaluation of the profitability of private equity funds in modern foreign econometric approaches [Otsenka dokhodnosti fondov pryamyh chastnyh investitsiy v sovremennyh zarubezhnyh ekonometricheskikh podkhodakh]. Russian Journal of Entrepreneurship, 20(1). (in Russian). – doi: 10.18334/rp.20.1.39711.


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