Analyzing the Criteria of Private Equity Investment in Emerging Markets: The Case of Tunisia

Amira Neffati, Wided Khiari, Azhaar Lajmi () and Farah Mejri
Additional contact information
Amira Neffati: MACMA-Lab, Higher Institute of Management of Tunis, University of Tunis, Bardo 2000, Tunisia
Wided Khiari: MACMA-Lab, Higher Institute of Management of Tunis, University of Tunis, Bardo 2000, Tunisia
Azhaar Lajmi: GEF2A-Lab, Higher Institute of Management of Tunis, University of Tunis, Bardo 2000, Tunisia
Farah Mejri: Higher Institute of Management of Tunis, University of Tunis, Bardo 2000, Tunisia

JRFM, 2025, vol. 18, issue 7, 1-26

Abstract: Restrictive conditions that financial institutions require on credit allocation remain the main constraints to developing and creating new businesses. In this context, the concept of private equity came to fill this problem. However, because it is a riskier business, investors thoroughly assess before investing in a firm’s capital. This work aims to analyze the criteria of private equity investment and explore how Tunisian private equity investors make investment decisions. The methodology applied aligns with prior works studying investment criteria used by private equity investors. Results show that 100% of investors prefer to invest in firms that aim to achieve some growth and are in the development phase. In addition, under informational asymmetry between entrepreneurs and investors, the latter place greater importance on the business plan, information gathered during interviews with promoters, and information on the products.

Keywords: private equity; investment; financing; criteria; development; information quality; sustainability (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1911-8074/18/7/358/pdf (application/pdf)
https://www.mdpi.com/1911-8074/18/7/358/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:18:y:2025:i:7:p:358-:d:1691945

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().