Conclusion and Outlook

Abstract

This contribution investigates the influence of diversification on performance in private equity firms and outlines the conduct of private equity players in the role of a parent to a portfolio of diversified businesses. The study is unique in the way that it pioneers the comprehensive analysis of the overall private equity management model and its success factors rather than the behavior of private equity professionals in individual transactions or the performance of specific investment vehicles, which have been under investigation in prior academic research. The study, furthermore, draws a comparison to the management model of multi-business firms and provides a first assessment of the applicability of private equity key success factors in traditional diversified companies.