Navigating Investment Terrain: Exploring the Efficacy of Relational Perspective as a Tool for Team Analysis in Private Equity and Venture Capital Investments
Prudens, Bazian (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202401221668
https://urn.fi/URN:NBN:fi:amk-202401221668
Tiivistelmä
This bachelor's thesis, within the International Business Degree Program specializing in Entrepreneurship at Haaga-Helia University of Applied Sciences, aims to bridge the gap between psychological, sociological, and financial perspectives. It does so by exploring the practical applicability of the relational perspective as a tool for analyzing teams. Focused on private equity (PE) and venture capital (VC) investments, the interdisciplinary research examines teams through multiple lenses, aiming to provide a comprehensive understanding of the relational perspective in financial contexts.
The research employs a mixed methods approach, integrating both quantitative and qualitative data. Quantitative data, provided by the commissioning company, is complemented by qualitative insights gained through interviews with investment experts.
The central research question investigates the effectiveness of the relational perspective in mitigating human-related risks for PE and VC investors before investment decisions. The research identifies 18 dimensions affecting teams through quantitative analysis, providing a nuanced understanding of team dynamics. Qualitative data from investor interviews highlights the need for trustworthy team analysis in decision-making.
Viewed through a relational lens, team issues are seen as challenges that have a ripple effect on the entire team. This perspective emphasizes the significance of scrutinizing not just the interactions among team members but also the relationships each member forges with the team as a cohesive unit. Risks within teams are identified and recognized as broader problems affecting work groups and the overall work environment. The relational perspective heightens the interdependence of team dynamics, underscoring the imperative to address these issues for enhanced team well-being and performance.
For investors, this perspective provides valuable insights, facilitating a more informed assessment of whether to invest in the team. Venture capitalists can utilize this understanding to forecast optimal approaches for mentoring and coaching the team, leveraging a deeper insight into their relational dynamics. Private equity investors gain a more accurate perspective on areas requiring attention and potential modification, enabling them to navigate the complexities of team dynamics with greater precision and foresight.
The thesis concludes with the recommendation section, offering concrete guidance to aid investors in their decision-making process based on the pivotal role that management teams play in investment decisions and the various factors influencing these evaluations.
The research employs a mixed methods approach, integrating both quantitative and qualitative data. Quantitative data, provided by the commissioning company, is complemented by qualitative insights gained through interviews with investment experts.
The central research question investigates the effectiveness of the relational perspective in mitigating human-related risks for PE and VC investors before investment decisions. The research identifies 18 dimensions affecting teams through quantitative analysis, providing a nuanced understanding of team dynamics. Qualitative data from investor interviews highlights the need for trustworthy team analysis in decision-making.
Viewed through a relational lens, team issues are seen as challenges that have a ripple effect on the entire team. This perspective emphasizes the significance of scrutinizing not just the interactions among team members but also the relationships each member forges with the team as a cohesive unit. Risks within teams are identified and recognized as broader problems affecting work groups and the overall work environment. The relational perspective heightens the interdependence of team dynamics, underscoring the imperative to address these issues for enhanced team well-being and performance.
For investors, this perspective provides valuable insights, facilitating a more informed assessment of whether to invest in the team. Venture capitalists can utilize this understanding to forecast optimal approaches for mentoring and coaching the team, leveraging a deeper insight into their relational dynamics. Private equity investors gain a more accurate perspective on areas requiring attention and potential modification, enabling them to navigate the complexities of team dynamics with greater precision and foresight.
The thesis concludes with the recommendation section, offering concrete guidance to aid investors in their decision-making process based on the pivotal role that management teams play in investment decisions and the various factors influencing these evaluations.