{"id":43927,"date":"2017-11-26T16:19:56","date_gmt":"2017-11-26T14:19:56","guid":{"rendered":"https:\/\/newserver.fyb.de\/produkt\/the-role-of-expert-networks-in-private-equity-investments\/"},"modified":"2017-11-26T16:19:56","modified_gmt":"2017-11-26T14:19:56","slug":"the-role-of-expert-networks-in-private-equity-investments","status":"publish","type":"product","link":"https:\/\/www.fyb.de\/en\/produkt\/the-role-of-expert-networks-in-private-equity-investments\/","title":{"rendered":"The role of expert networks in private equity investments"},"content":{"rendered":"

Chris\u00adtian Figge, M.A.<\/strong> \u2014 Rese\u00adarch Asso\u00adciate Center for Entre\u00adpre\u00adneu\u00adrial and Finan\u00adcial Studies (CEFS), TU Munich<\/p>\n

Elena De la Fuente<\/strong> \u2014 Mana\u00adging Direc\u00adtor Atheneum Part\u00adners, Munich<\/p>\n","protected":false},"excerpt":{"rendered":"

Expert networks are infor\u00adma\u00adtion service provi\u00adders that can provide support for know\u00adledge gene\u00adra\u00adtion in the context of invest\u00adment projects by faci\u00adli\u00adta\u00adting indi\u00advi\u00addu\u00adally tail\u00ado\u00adred expert discus\u00adsions with selec\u00adted indus\u00adtry experts. The custo\u00admers of expert networks include, in parti\u00adcu\u00adlar, private equity funds, hedge funds, consul\u00adting firms and indus\u00adtrial companies.<\/strong><\/p>\n

The number of expert networks increased signi\u00adfi\u00adcantly from one to 45 compa\u00adnies between 1998 and 2009, which indi\u00adca\u00adtes an extre\u00admely dyna\u00admic deve\u00adlo\u00adp\u00adment of demand in this market. Nevert\u00adhel\u00adess, expert networks are still rela\u00adtively seldom used outside the U.S., which is due in parti\u00adcu\u00adlar to the fact that the possi\u00adble uses of expert (networks) in the context of invest\u00adment decis\u00adi\u00adons are still largely unknown.<\/p>\n

The purpose of this article is to explain the role of expert networks in the context of private equity invest\u00adments. After a brief over\u00adview of the histo\u00adri\u00adcal deve\u00adlo\u00adp\u00adment of expert networks, the busi\u00adness model and func\u00adtio\u00adning of this indus\u00adtry will be presen\u00adted. Subse\u00adquently, the poten\u00adtial added value of experts will be explai\u00adned on the basis of theo\u00adre\u00adti\u00adcal and empi\u00adri\u00adcal findings. The focus is on two theo\u00adre\u00adti\u00adcal approa\u00adches based on the reduc\u00adtion of infor\u00adma\u00adtion asym\u00adme\u00adtries and the resource endow\u00adment of a company, respectively.<\/p>\n

Emer\u00adgence and deve\u00adlo\u00adp\u00adment of expert networks<\/strong><\/p>\n

Expert networks emer\u00adged in the United States with the foun\u00adding of the Gerson Lehr\u00adman Group (GLG) in 1998. GLG, the largest expert network to date, was initi\u00adally active in speci\u00adfic sectors such as health\u00adcare or the biotech\u00adno\u00adlogy indus\u00adtry. Within a rela\u00adtively short period of time, howe\u00adver, the field of appli\u00adca\u00adtion expan\u00added signi\u00adfi\u00adcantly after hedge fund mana\u00adgers in parti\u00adcu\u00adlar incre\u00adasingly used GLG to get in touch with poli\u00adti\u00adcal decis\u00adion-makers and to get a better feel for long-term deve\u00adlo\u00adp\u00adment trends.<\/p>\n","protected":false},"featured_media":41022,"comment_status":"open","ping_status":"closed","template":"","meta":{"wp_typography_post_enhancements_disabled":false},"product_brand":[],"product_cat":[2452,2509,2512,2517],"product_tag":[1825,1830,1834,1836],"class_list":{"0":"post-43927","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-ebook-en","7":"product_cat-fyb-2012-2","8":"product_cat-christian-figge-m-a-en","9":"product_cat-elena-de-la-fuente-en","10":"product_tag-christian-figge-en","11":"product_tag-elena-de-la-fuente-en","12":"product_tag-expert-networks","13":"product_tag-information-service-provider","14":"pa_sprache-english-3","15":"pa_sprache-german","17":"first","18":"outofstock","19":"taxable","20":"shipping-taxable","21":"purchasable","22":"product-type-variable"},"yoast_head":"\nThe role of expert networks in private equity investments - FYB Financial Yearbook<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.fyb.de\/en\/produkt\/the-role-of-expert-networks-in-private-equity-investments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The role of expert networks in private equity investments - FYB Financial Yearbook\" \/>\n<meta property=\"og:description\" content=\"Expert networks are information service providers that can provide support for knowledge generation in the context of investment projects by facilitating individually tailored expert discussions with selected industry experts. The customers of expert networks include, in particular, private equity funds, hedge funds, consulting firms and industrial companies. The number of expert networks increased significantly from one to 45 companies between 1998 and 2009, which indicates an extremely dynamic development of demand in this market. Nevertheless, expert networks are still relatively seldom used outside the U.S., which is due in particular to the fact that the possible uses of expert (networks) in the context of investment decisions are still largely unknown. The purpose of this article is to explain the role of expert networks in the context of private equity investments. After a brief overview of the historical development of expert networks, the business model and functioning of this industry will be presented. Subsequently, the potential added value of experts will be explained on the basis of theoretical and empirical findings. The focus is on two theoretical approaches based on the reduction of information asymmetries and the resource endowment of a company, respectively. Emergence and development of expert networks Expert networks emerged in the United States with the founding of the Gerson Lehrman Group (GLG) in 1998. GLG, the largest expert network to date, was initially active in specific sectors such as healthcare or the biotechnology industry. 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