Investment Appraisal Research Articles

A Comprehensive Approach for Selecting Third-Party Logistics Providers

The finest third-party logistics (3PL) supplier is a vital decision for businesses trying to streamline their supply chain operations. In order to free up time for businesses to concentrate on their core skills, third-party logistics providers offer a variety of services, such as distribution management, warehousing, and transportation. However, selecting the best 3PL supplier necessitates a rigorous assessment of variables including sector expertise, technical prowess, service quality, scalability, and cost-effectiveness. This introduction discusses the significance of choosing the best 3PL supplier and emphasizes important factors to take into account when making a choice. It is essential since there is a chance that third-party logistics (3PL) provider selection study may boost the supply chain's effectiveness and competitiveness. Firms may make selections that are tailored to their unique requirements by recognizing and assessing the elements that affect the choosing process. Proper 3PL selection may boost market response, save costs, expand the capacity of operations, and improve customer happiness. As a result, research in this field helps to create best practices and strategies that enhance supply chain management and promote entrepreneurship. A multi-criteria decision-making approach called The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) is used to rank and choose the best option from a list of options. To determine how closely each alternative resembles the ideal answer, TOPSIS takes into account both positive and negative features. Based on the greatest distance from the inverse idealistic and the lowest distance to the positive ideal, the outcome score is calculated. This approach facilitates decision-making processes in a variety of contexts, such as project prioritization, supplier selection, and investment appraisal. Alternative parameters taken as 3PL-1, 3PL-2, 3PL-3, 3PL-4, 3PL-5. Evaluation parameters taken as Delivery Service (%), Quality of the Customer Experience (Quos), Coverage of the EU Territories (%), Flexibility, and Cost (EUR/km). From the result it is seen that 3PL-2 secures the first rank which is acquired by the TOPSIS method. To secure the first place on the table consistency will be the key factor which was maintained by 3PL-2

Comparative Performance Evaluation of Real Estate Investment Trusts Shares and Money Deposit Bank Shares in Nigeria (2013 – 2022)

This study presented a need to evaluate the investment performance of Real Estate Investment Trust shares and Money Deposit bank shares in Nigeria using dividend yields between 2013 to 2022. The aim of the study was to determine the mean annual dividend yields of both investment media and subsequently compare the relative performance so as to enable investors to make informed decisions about their choice of investment. The objectives of the study were to ascertain the dividend yield of both investment platforms over the last ten years, from 2013 to 2022 and to determine whether or not REIT shares outperformed Money Deposit Bank shares in dividend yield between 2013 to 2022.The methodology of data sample technique used was the purposive sampling technique, quantitative method of data collection was used to gather, assemble and collate data from the annual reports of selected of Real Estate Investment Trust and Money Deposit bank companies as well as through special publications of the Nigerian Stock Exchange (NSE) and Central Bank of Nigeria (CBN). Descriptive statistical techniques (Mean, standard deviation) were employed in analysing the data. The study found out that the performance of REITs shares showed a mean return of 5.275% over the ten years, this was compared to that of the performance of Money Deposit bank shares at 8.632% over the same ten years, showing under-performance. The study also found out that investments in Money Deposit Bank shares are much riskier than investment in REITs between 2013 to 2022. The study recommended that investment appraisal should be carried out before a decision is made towards embarking on such investment. It was also suggested that stakeholders in REIT should create an enabling environment for REIT to thrive in Nigeria.

Appraising eHealth Investment for Africa: Scoping Review and Development of a Framework.

As opportunities grow for resource-constrained countries to use eHealth (digital health) to strengthen health systems, a dilemma arises. Wise eHealth investments require adequate appraisal to address opportunity costs. Economic appraisal techniques conventionally utilised for this purpose require sufficient economic expertise and adequate data that are frequently in short supply in low- and middle-income countries. This paper aims to identify, and, if required, develop, a suitable framework for performing eHealth investment appraisals in settings of limited economic expertise and data. Four progressive steps were followed: (1) identify required framework attributes from published checklists; (2) select, review, and chart relevant frameworks using a scoping review; (3) analyse the frameworks using deductive and inductive iterations; and, if necessary, (4) develop a new framework using findings from the first three steps. Twenty-four candidate investment appraisal attributes were identified and seven relevant frameworks were selected for review. Analysis of these frameworks led to the refinement of the candidate attributes to 23 final attributes, and each framework was compared against them. No individual framework adequately addressed sufficient attributes. A new framework was developed that addressed all 23 final attributes. A new evidence-based investment appraisal framework has been developed that provides a practical, business case focus for use in resource-constrained African settings.

AI Effectiveness and Risk Assessment of Investments in High-Risk Start-Ups

Which business idea or project would be successful? Is it worth investing in it and to what extent? What is the risk level and how can it be mitigated to achieve success? All these questions are relevant to both entrepreneurs and investors, especially when it comes to high-risk start-ups. The purpose of this paper is to present a methodology for intelligent effectiveness and risk assessment (IERA) of investments in high-risk start-ups, with a focus on space industries. Such an assessment is challenging for several reasons, including the lack of unified statistics on space industries, evaluation of benefits other than economic ones, long-term development challenges, etc. The developed IERA methodology integrates a combination of various known methods used in the space industries for both investment appraisal and risk assessment. The application of various AI-based tools for methodology criteria, weights, and scores contributes to obtaining realistic values and ensures the success of the analysis results, thereby benefiting the project itself. Thus, the applied IERA methodology can be implemented in real-time, based on a broad knowledge base, with high accuracy, and requiring significantly fewer financial resources. The main advantage of the developed methodology is the assurance it provides to both entrepreneurs and investors, offering them sufficient certainty and confidence.

Sustainable bio-hydrogen production: Assessing economic and environmental implications of a scaled-up industrial bioethanol prototype

This study comprehensively evaluates a bioethanol steam reforming plant in Colombia for green hydrogen (H2) production, sourced from the country's sugar industry. By integrating experimental data and Aspen Plus simulations, the research examines the techno-economic and environmental aspects of utilizing bioethanol as a renewable feedstock for H2 production. Rigorous process modeling, capital investment appraisal, operational cost estimation, economic performance metrics, and environmental assessment are considered. Key findings indicate an H2 yield of 0.155 kg/kg of bioethanol and 34 % energy efficiency, eliminating reliance on fossil fuels. The Levelized Cost of Hydrogen (LCOH) at a Colombian sugar mill is calculated at 10.27 USD/kg under specific assessment conditions. The process exhibits a carbon footprint of 2.16 kgCO2-eq/kgH2 from an environmental perspective. These results emphasize the potential of bioethanol steam reforming as a sustainable and economically viable pathway for green-H2 production, advancing energy transition efforts away from fossil fuels.

Cashing in: cost-benefit analysis framework for digital hospitals

BackgroundFor many countries, especially those outside the USA without incentive payments, implementing and maintaining electronic medical records (EMR) is expensive and can be controversial given the large amounts of investment. Evaluating the value of EMR implementation is necessary to understand whether or not, such investment, especially when it comes from the public source, is an efficient allocation of healthcare resources. Nonetheless, most countries have struggled to measure the return on EMR investment due to the lack of appropriate evaluation frameworks.MethodsThis paper outlines the development of an evidence-based digital health cost-benefit analysis (eHealth-CBA) framework to calculate the total economic value of the EMR implementation over time. A net positive benefit indicates such investment represents improved efficiency, and a net negative is considered a wasteful use of public resources.ResultsWe developed a three-stage process that takes into account the complexity of the healthcare system and its stakeholders, the investment appraisal and evaluation practice, and the existing knowledge of EMR implementation. The three stages include (1) literature review, (2) stakeholder consultation, and (3) CBA framework development. The framework maps the impacts of the EMR to the quadruple aim of healthcare and clearly creates a method for value assessment.ConclusionsThe proposed framework is the first step toward developing a comprehensive evaluation framework for EMRs to inform health decision-makers about the economic value of digital investments rather than just the financial value.

The Puzzle of UK (Under‐) Investment: Is Investment Short‐Termism Just a Supply‐Side Problem in Capital Markets?

AbstractInvestors and financial market intermediaries have been blamed for under‐investment, low growth and low rates of innovation in the UK, with their behaviour being attributed to short‐termism. Various reasons for short‐termism have been identified, including undervaluing long‐term earnings, increased financial obstacles associated with longer investment horizons, and the adoption of financial control systems to meet investors’ demands for quarterly earnings reports. As a result, firms may opt for suboptimal short‐term investment projects while neglecting potentially valuable long‐term initiatives. Most research has focused on large corporates, which constitute a small fraction of the economy and involve multiple stakeholders. There is a significant knowledge gap regarding small owner‐managed firms that rely primarily on internal financing and bank debt for investment. Our study fills this gap by analysing a comprehensive UK finance and investment decision‐making survey of 1501 firms across all classes. The survey reveals that investment appraisal relies on a ‘payback’ period. We find that 58.8% of firms choose a payback period of 3 years or less, with shorter payback periods more prominent among the smallest firms. This suggests that financial frictions impact the investment behaviour of the smallest firms, while shareholder‐driven short‐termism influences the largest firms but only in relation to research and development projects.

The importance of timing in energy shipping

Aim: Investment decisions in shipping are notoriously difficult. The key reason is that freight rates are highly volatile and often unpredictable. The energy shipping sector is most challenging. The paper formulates an investment decision rationale in energy shipping and provides insights as to the ability of experts to predict market trends when it comes to the oil tanker supply and demand and the resulting freight rates. Moreover, we focus on the timing of such investment decisions and ways to identify when the timing thereof is right. This paper aims to develop an investment decision framework in energy shipping, specifically investigating the importance of timing when making investment decisions in this sector, and to test the suggested rationale by applying it to a specific oil tanker purchase case. Design / Research methods: The research process started with a Delphi study to gather expert opinions on the changes taking place in the shipping market. We continued our research process with a concise economic analysis of the 2018 shipping market, and we then applied the findings to a feasibility study for purchasing a specific type of small-scale (Aframax) oil tanker by a company based in Cyprus. Conclusions / findings: Our main findings were that the opinions of the selected commercial experts supported the results of the secondary data analysis, and all the respondents found the year 2018 an attractive time for investing in ships. The results of an investment appraisal financial modelling exercise for the above-mentioned specific purchase case were satisfactory for accepting the project. Due to low purchase prices and high residual value, the initial required investment was lower while the return and other results would be better for a 15-year-old ship than for a 10-year-old unit. However, the risks were to increase together with age. Considering that the prices of Aframaxes were hitting their historically low levels in 2018, and that within the next five years the demand for modern tonnage was anticipated to be firm and thus raise their values up to 35% above the 2018 levels, the purchase of a more modern unit was recommended as it could give an opportunity of a beneficial resale at the end of the project or earlier. In view of the latest market developments, we can now conclude that overall, despite the unprecedented turbulence during the pandemic years, the 2018 investment recommendation proved correct and insightful. Originality / value of the article: The current paper’s intended contribution is an investment analysis based on the primary data from a relatively small shipping company. The disclosed primary data for the intended 2018 purchase of an Aframax oil tanker is unique. Thus, the current paper provides useful practical guidance for potential investors and other professionals who follow the energy shipping market as well as contribute to academic research in shipping finance by providing a framework that is applicable well beyond the described case study. Considering the upward move in the crude oil freight rates and anticipating investment interest in energy shipping, following the Covid-19 pandemic and the war between Russia and Ukraine, we believe that this research paper has a good timing. Keywords: energy shipping, investment appraisal, oil freight market, shipping cycles, decision framework, decision timing JEL: F44, G31, L22, L91, R42

Analisis Kelayakan Investasi Properti Proyek Pembangunan Perumahan Grand Panghegar Residence Purwakarta

One of the advantages of property investment is protecting the purchasing power of investments and getting added value from developments such as being converted into residential buildings, however, the development of housing projects and their long implementation time mean that problems may occur that are unforeseen. The aim of this research is to determine and analyze the feasibility of property investment for the Grand Panghegar Residence Purwakarta housing development project using the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period (PP) calculation methods. This type of research uses quantitative descriptive. The research results show that the project life is 2 years with an investment value of IDR 55,500,000,000, a total of 608 units for Type 30/60. The results of research calculations obtained from the investment appraisal method used were obtained as Net Present Value (NPV) = IDR 56,689,500,000 (Positive), Internal Rate of Return (IRR) = 33.72% > 12%, Payback Period ( PP) = 2, within 2 months of investment capital. The conclusion of this research states that the Grand Pahengar Residence Purwakarta Housing is an investment worthy to build and develop.

The impact of indirect benefits (reduced travel time, fuel use and emissions) in cost benefit analysis of road safety countermeasures.

In cost benefit analysis of road safety countermeasures, all relevant effects on safety, travel time and environment have a substantial impact during economic appraisal. However, in the most widely used road safety appraisal tools such as SafetyAnalyst and International Road Assessment Programme (iRAP), indirect effects related to travel time and environment are not considered. Most economic appraisal studies conducted for road safety countermeasures consider only the safety benefits and ignore the indirect benefits due to lack of models to evaluate them. This study attempts to document the quantitative impact of indirect benefits during economic appraisal of road safety infrastructure investments particularly from the angle of reduced crashes. To this effect, data from 9 European countries and the 20-year infrastructure improvement programme developed for the Netherlands are applied to demonstrate the impact of these indirect benefits through a quantitative study. The results show that indirect benefits increase the value of benefits by 7%, which improves the cost effectiveness of countermeasures. Consequently, the number of countermeasures selected for implementation are increased due to addition of these benefits. Travel time benefits constitute the largest share of indirect benefits with a contribution of 6% to the overall benefits due to countermeasure implementation. In conclusion, indirect benefits have a substantial impact on the computation of benefits and countermeasure selection process. In order to present improved business cases for road safety infrastructure investments, there is need to include these benefits during economic appraisal process. Travel time benefits have the highest portion of all indirect benefits compared to vehicle operating costs (VOCs) and emission benefits. The study recommends conducting more research related to travel time benefits due to countermeasure implementation.

Harvesting Quota and Financial Feasibility of Timor Deer Captive Breeding in Sadhana Arifnusa East Lombok

Timor deer breeding activities as a type of animal that has economic value have been widely carried out in Indonesia. However, management in the form of determining harvest quotas that affect the feasibility of business is still minimal in various captive Timor deer in Indonesia.The objective of this research were to determine the harvest quota of timor deer and finansial feasibility of cavtive breeding of Sadhana Arifnusa. The harvest quota which is carried out once a year is determined based on the calculation of the break even point (BEP). The scenario of harvesting twice a year is based on the growth rate, and population harvesting rate. Financial feasibility is measured based on investment appraisal criteria, namely Net Present Value, Benefit Cost Ratio, Internal Rate of Return, and Payback Period. The result revealed that the harvest quota which is carried out once a year were 5 individuals, population size that must be available at the time of harvest is 48 individuals. Meanwhile, the harvest quota that is carried out twice a year from year 1 to year 3 is 2 individuals. Based on the financial value of the scheme without slaughter and the scheme with slaughter, it can be said that the timor deer captive business potentially profitable and feasible to develop with NPV values ​​of Rp. 428,748,935 and Rp. 934,136,423 respectively; BCR value respectively 1.66 and 2.46; IRR value of 28.89% and 32.89% respectively, and ability to return investment after 4.6 years and 5.1 years.

Geographic information system-based multi-criteria decision-making analysis for investment assessment of wind-photovoltaic-shared energy storage power stations: a case study of Shanxi Province.

As the center of the development of power industry, wind-photovoltaic (PV)-shared energy storage project is the key tool for achieving energy transformation. This research seeks to construct a feasible model for investment appraisal of wind-PV-shared energy storage power stations by combining geographic information system (GIS) and multi-criteria decision-making (MCDM) method. Firstly, a comprehensive criteria system is established from the perspectives of orography, economy, resources, climate, and society, and the evaluation data is described using probabilistic linguistic term sets (PLTSs). Then, to avoid the weight deviation produced by the single weighting approach, a comprehensive weighting model including the best-worst method (BWM) and entropy weight method is provided to calculate the weights of criteria. Next, expert weights are calculated based on trust analysis. Finally, alternatives are ranked by the improved gained and lost dominance score (GLDS) method. To verify the validity of the model, an empirical investigation is carried out in Shanxi Province. The results show that the economy is the primary factor influencing the investment decision. Among all the projects approved by the government, alternative F4 located in Yanzhuang Town, Yuanping City is the best investment object. Furthermore, to illustrate the stability of the result, triple sensitivity analysis and comparative analysis are conducted in Shanxi Province. This study expands the application scope of GIS and MCDM method by first providing support for government and investors to identify optimal investment targets.

Investment of hydrogen refueling station based on compound real options

As the development of hydrogen refueling stations (HRS) is key to the hydrogen industry, it is necessary to study the investment feasibility for potential investors in order to stimulate its investment. We view the HRS investment as a two-stage decision-making process, distinguishing characteristics of off-site HRS from those of on-site HRS. Investors can first decide whether or when to invest in an off-site HRS, and then can accordingly decide whether or when to upgrade from an existing off-site HRS to an on-site HRS, by retrofitting off-site HRS with on-site hydrogen production device. We select natural gas reforming as the technology of on-site hydrogen production device, not only because natural gas reforming is cheaper and maturer, but also because this type of retrofit has been applied in a real case. Since the investment in HRS entails multiple uncertainties, we use a compound real options approach for conducting an appraisal of HRS investment. Accordingly, we use the Chinese case to present a new perspective to the sequential analysis of HRS investment decision-making. Four various scenarios are set for a case study, including one benchmark scenario reflecting the current Chinese hydrogen policies, and three comparative scenarios reflecting potentially improved policies, such as increasing operational subsidy, implementing preferential taxation and stimulating demand. The results show the current scenario is not beneficial to invest in HRS building on the proposed analytical framework and the data collected from the case of China. Furthermore, the increase in demand plays the leading role in improving the probability of HRS investment, followed by the implementation of preferential taxation and increasing operational subsidies. Additionally, the on-site HRS shows its superiority over off-site HRS, because all scenarios suggest upgrading to on-site HRS should be executed immediately once the initial off-site HRS is constructed. Therefore, in the context of Chinese hydrogen market and the selected on-site technology of natural gas reforming, it is necessary to create a more favorable business environment for the layout of on-site HRS.

A multidimensional appraisal of domestic investment, external debt and economic development nexus: evidence from SSA

PurposeThis study examines the effect of external debt and domestic capital formation on economic development in Sub-Saharan African (SSA) economies.Design/methodology/approachUsing the Dynamic Common Correlation Effects (DCCE) technique and the Driscoll and Kraay fixed-effect technique, this paper conducts a multidimensional assessment of external debt and domestic investment on economic development across a panel of 35 SSA countries from 1995 to 2018. The data utilized are sourced from the World Development Indicators (2021) and the United Nations Development Program (UNDP) database (2021).FindingsThe results reveal that domestic investment has a positive impact on economic development in SSA countries, consistent across all three dimensions of the human development index (income, education and life expectancy). However, external debt exhibits an adverse effect on economic development, consistently yielding negative outcomes for life expectancy, education and income.Practical implicationsBased on these findings, the authors recommend that SSA economies implement appropriate policies, such as reducing bureaucratic requirements and addressing corruption, to enhance domestic capital investment. Additionally, efforts should be directed toward channeling contracted debt into productive sectors like road construction and electricity provision.Originality/valueThis study is among the first to assess the impact of domestic investment and external debt on the three dimensions of human development outlined by the UNDP. Furthermore, it employs a robust econometric method that considers cross-sectional dependence (CD).

Impacts of highway induced land use changes on transport demand

Highway investment appraisals usually do not account for land use changes triggered by the investment. However, previous studies argue that new highways promote sprawling land use development associated with greater car dependency and increased motorized transport demand. This paper aims to increase the knowledge of how land use changes resulting from new highways impact transport demand. We model induced transport demand from seven highway investments, assuming both fixed and dynamic land use between the build and the no build scenarios. When land use is allowed to change, relocation of population is estimated with a regression model building on existing dynamics between population density and job accessibility. Our results indicate that land use changes resulting from highway investments impact induced transport demand. Highways that provide substantial travel time savings near urban areas are found to generate most induced transport demand from land use changes. However, induced demand from land use changes constitute a modest proportion of total induced demand resulting from the highways.

Transaction Cost Economics Framework Development for Malaysian Housing Development

Housing development is a high-risk, multifaceted and cross-subsidies business. Therefore, it is essential to thoroughly evaluate its viability through comprehensive feasibility studies. It is imperative to carry out meticulous investment appraisals, specifically in the realm of Malaysian housing developments, known for their substantial regulatory expenses that consequently elevate housing costs. Thus, this study aims to demonstrate the development of the transaction cost economics (TCE) framework recommended to unbundle the hidden cost components within the housing development processes. TCE adoption is useful to coordinate and optimise the economic activities within these processes. To overcome the shortcomings of TCE, the RIBA Plan of Work 2013 stages and key tasks are integrated with the housing development stages, processes and cost components to determine the essential economic activities, highlighting the corresponding parties, processes and costs. The TCE framework is established by experts from various sectors, including government agencies, local authorities, professionals and developers. This is achieved through the use of sequential explanatory mixed methods, which are employed to handle the diverse variables and aspects that hinder the nature of the research. Initially, a literature review identified 26 anticipated TCE components. However, data gathering revealed a total of 38 TCE components. The openended questionnaire and semi-structured interview were analysed and triangulated using frequency analysis, content validity ratio analysis and content analysis to ensure all necessary elements were included and unnecessary items removed. Eventually, the findings are applied in the development of the proposed TCE framework for Malaysian housing development. This framework outlines the necessary economic activities along with their associated development costs and TCE categorisation. It can be used to accurately prepare feasibility studies. To conclude, the research outcome improves the efficiency of economic transactions in Malaysian housing development by identifying and organising the various cost components involved, allowing for the optimisation of transaction costs and increased transparency of housing development expenses.

Evaluation of the Performance of Residential Property Investments in Minna, Niger State, Nigeria

This study evaluated the performance of residential property investments in Minna, Niger State, Nigeria. Data for the study were collected through field survey from estate surveying and valuation firms which are active in the residential property market in Minna. Thus, a total of 382 residential investment properties were selected from the property portfolio of estate surveying and valuation firms in the city for the study. Variables utilised for the study include the capital value, annual expenses in form of taxes, rates, repairs etc. and annual rental value of 1-BR, 2-BR and 3-BR apartments for the period, 2009 – 2021 and analysed using analysis of variance, geometric mean and coefficient of variation. The findings indicate that the variance in total return for all residential investment property types across all the study locations is statistically significant, also the risk associated with this return varies according to the residential property investment types across all the locations considered in the study. The study recommends that prudent residential real estate investors in the city require impeccable pre-investment appraisal of residential property investments at all locations in the city before investing their capital, particularly if they are risk averse.

An examination of the impact of corporate sustainability practices on decision-making for Chinese investors

This paper examines the impact of corporate sustainability practices on Chinese investors' decision-making within China's unique CSR framework shaped by government directives. Through focus group discussions with 36 MBA participants from Zhejiang University, the study reveals a general preference for prioritising sustainability in investment appraisal, reflecting the Chinese government's strong stance on CSR. Trust in CSR disclosure depended on historical accuracy and third-party verification. As China strengthens its sustainability directives, this study predicts greater integration of sustainability metrics in China's investment strategies and highlights the symbiotic relationship between state policies, corporate practices and investor perceptions.

Affect and reason in uncertain accounting settings: The case of capital investment appraisal

AbstractAffect is generally characterised as distinct from, and detrimental to, reason in investment appraisal. This paper, in contrast, illustrates that affect is integral to reasoning, particularly when uncertainty disturbs investment appraisal. Investment appraisals produce uncertain projections about the future, which generate discomfort. This causes actors to undertake adaptive activities to craft calculations they can become comfortable with, which we characterise as epistemic participation and shaping the politics of expectations. These activities constitute a dualistic fusion of comfort and reason: discomfort initiates and informs reasoning to regain comfort. We further show the effects of the laborious efforts accompanying this accretion of both knowledge and comfort. Our arguments are supported by an analysis of investment appraisal for a 30‐year capital project.

Research on the Investment Strategy of Private Equity Investment Fund Targeted Increase in NEEQ — An Empirical Analysis Based on BP and Hopfield Neural Network Model

Private equity investment funds targeted increase in NEEQ has become a new strategy for PE investment. However, the currently adopted Logit regression and one-factor ANOVA models are not suitable for analyzing nonlinear investment activities, and the investment appraisal does not work well. In this paper, all NEEQ companies that implemented private placement in 2017 are used as the study sample. This paper also empirically analyzes the current situation of domestic private equity investment funds based on BP and Hopfield neural network models, then the results of the two models are compared. It is concluded that the accuracy of the BP neural network model can be more than 90%. So, the BP neural network can be used as the optimal model of private equity investment funds investment strategy in NEEQ.