Chapter 2. Clusters of investment within private equity

This chapter explains the different clusters of investment private equity operators and venture capitalists put in place to meet a firm’s needs. The first section illustrates two approaches explaining the relationship between investment and activity implemented by investors: traditional and firm-based. It concludes by explaining why investors choose the first approach. The second section identifies the most important features of every cluster of investments: definition, risk–return profile, critical issues, and managerial involvement. The last six sections analyze different investment typologies.

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