Artikel
A simple utility approach to private equity sales
The paper examines the liquidity risk of a private equity firm that decides to dispose of a large holding in its portfolio. As the sale takes time, it requires a careful balancing act of the exposure to the fluctuations in the market value of the investment against the large sale-induced price depression. A mean-standard deviation utility framework is an appealing decision tool for optimizing protracted asset dispositions. The firm maximizes the expected profit from the sale strategy net of the price concession minus a penalty function for exposure to the price risk, with the penalty weight related to a loss confidence interval.
- Language
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Englisch
- Bibliographic citation
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Journal: The Journal of Entrepreneurial Finance (JEF) ; ISSN: 1551-9570 ; Volume: 8 ; Year: 2003 ; Issue: 1 ; Pages: 103-110 ; Montrose, CA: The Academy of Entrepreneurial Finance (AEF)
- Classification
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Management
- Event
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Geistige Schöpfung
- (who)
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Dubil, Robert
- Event
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Veröffentlichung
- (who)
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The Academy of Entrepreneurial Finance (AEF)
- (where)
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Montrose, CA
- (when)
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2003
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Dubil, Robert
- The Academy of Entrepreneurial Finance (AEF)
Time of origin
- 2003
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