Abstract
This chapter aims to place the asset class private equity in the framework of principal-agent theory. Section 2.1 develops a generic theory of fund investments. Key corollaries of this theory are that investors must take special care to a) choose funds in accordance with their risk-sharing preferences, and b) then to select funds out of a group of possible alternatives. In section 2.2, existing empirical research is examined in light of this proposition, before the chapter is concluded in section 2.3.
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© 2010 Gabler | GWV Fachverlage GmbH
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Hobohm, D. (2010). Theory of Fund Investments. In: Investors in Private Equity Funds. Gabler. https://doi.org/10.1007/978-3-8349-8726-6_2
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DOI: https://doi.org/10.1007/978-3-8349-8726-6_2
Publisher Name: Gabler
Print ISBN: 978-3-8349-2183-3
Online ISBN: 978-3-8349-8726-6
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