Analysis of the private equity performance in Brazil

• Autor(a) principal: Soares, Ricardo Jorge Vitorino
• Data de Publicação: 2011
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/4329
• topic: Private equity; Performance; IPO Initial Public Offering; IBOVESPA; Capital de risco; Performance

The goal of this paper is to evaluate the performance of private equity activity in Brazil, taking into account the difficult times that the worldwide activity is being through. Considering that Brazil is currently one of the major emerging economies in the world (Enert&Young, 2011) and the fact of private equity‘s activity in this country registered a positive evolution, this study allowed to evaluate not only the evolution of the funds that are implemented in the Brazilian market, but also permitted to understand the main factors that had lead it to this growth. Through this work was also possible to compare the returns of private equity funds with the evolution of the principal stock exchange in Brazil (IBOVESPA), in order to determine the level of implicit risk in both alternatives. The results suggest that private equity performance was slightly higher than IBOVESPA, and even more important the results also showed that private equity funds, in average, were less risky than the stock exchange. Therefore, according to the results, the analysis undertaken proved to be an important tool to unveil the new reality of private equity in the Brazil, so it could be used by any investor who has this market as a target.