AUTOMATION OF THE SELECTION PROCESS IN RELATED PRIVATE EQUITY CAPITAL GROUPS
AUTOMATION OF THE SELECTION PROCESS IN RELATED PRIVATE EQUITY CAPITAL GROUPS

Summary/Abstract: Related capital groups are considered to include, among others, Venture Capital (VC) or Private Equity (PE) funds. An effective process of selection of investments in portfolio companies is one of the main factors of successful investment. This article presents the application and usefulness of new technologies in decision-making and investment management by related Private Equity capital groups, by an analysis case studies. The goal of this work is to answer the following research questions: Is it possible to reduce the human factor risk in investment decisions of related PE capital groups? How can automation facilitate the selection of enterprises in the investment process? Apart from the analysis of available literature and studies, the author presents case studies covering analysis of available documents and results of interviews with certain companies that are related Private Equity capital groups. Using exclusively automation in the selection of enterprises seems risky and is not completely reliable however without any doubt there are some advantages of using that like pre-screening suggestions or support to final investment decisions. Case studies prove also that automated process of portfolio companies selection works only when the acquisition objects have been existing on the market for only a short time. It is recommended to carry out statistical research on a larger research sample in order to confirm initial conclusions.

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