177.md

Tutorial 177: Quantum Private Equity

Objective

Implement quantum private equity algorithms.

Prerequisites

• Tutorials 175, 176 completed

What You'll Learn

• Deal sourcing
• Value creation
• Exit optimization

Step-by-Step Code

import math
import numpy as np
from abirqu import Circuit
from abirqu.primitives import QuantumRun

# ============================================
# Part 1: Deal sourcing
# ============================================

print("Quantum Private Equity:")
print("=" * 50)

def quantum_deal_sourcing(targets, criteria):
    """Quantum deal sourcing."""
    num_qubits = 4
    circuit = Circuit(num_qubits, name="QDealSource")
    
    # Encode targets
    circuit.ry(0, targets[0] * math.pi)
    circuit.ry(1, targets[1] * math.pi)
    
    # Encode criteria
    circuit.ry(2, criteria[0] * math.pi)
    circuit.ry(3, criteria[1] * math.pi)
    
    # Sourcing
    circuit.cnot(0, 2)
    circuit.cnot(1, 3)
    circuit.rz(2, 0.5)
    circuit.rz(3, 0.5)
    
    circuit.measure_all()
    return circuit

print("Quantum Private Equity:")
print("-" * 50)

deal_types = [
    ("Buyout", [0.7, 0.3], [0.8, 0.2]),
    ("Growth", [0.6, 0.4], [0.6, 0.4]),
    ("Distressed", [0.4, 0.6], [0.3, 0.7]),
    ("Mezzanine", [0.5, 0.5], [0.5, 0.5]),
]

for name, targets, criteria in deal_types:
    circuit = quantum_deal_sourcing(targets, criteria)
    result = QuantumRun(circuit, shots=100)
    print(f"  {name}: {result.counts}")

# ============================================
# Part 2: Value creation
# ============================================

print("\n\nValue Creation:")
print("-" * 50)

def quantum_value_creation(operational, financial):
    """Quantum value creation."""
    num_qubits = 4
    circuit = Circuit(num_qubits, name="QValue")
    
    # Encode operational improvements
    circuit.ry(0, operational[0] * math.pi)
    circuit.ry(1, operational[1] * math.pi)
    
    # Encode financial engineering
    circuit.ry(2, financial[0] * math.pi)
    circuit.ry(3, financial[1] * math.pi)
    
    # Value creation
    circuit.cnot(0, 2)
    circuit.cnot(1, 3)
    circuit.rz(2, 0.5)
    circuit.rz(3, 0.5)
    
    circuit.measure_all()
    return circuit

value_scenarios = [
    ("Operational", [0.8, 0.2], [0.4, 0.6]),
    ("Financial", [0.3, 0.7], [0.8, 0.2]),
    ("Strategic", [0.6, 0.4], [0.6, 0.4]),
    ("Balanced", [0.5, 0.5], [0.5, 0.5]),
]

for name, operational, financial in value_scenarios:
    circuit = quantum_value_creation(operational, financial)
    result = QuantumRun(circuit, shots=100)
    print(f"  {name}: {result.counts}")

# ============================================
# Part 3: Exit optimization
# ============================================

print("\n\nExit Optimization:")
print("-" * 50)

def quantum_exit_optimization(portfolio, market):
    """Quantum exit optimization."""
    num_qubits = 4
    circuit = Circuit(num_qubits, name="QExitOpt")
    
    # Encode portfolio
    circuit.ry(0, portfolio[0] * math.pi)
    circuit.ry(1, portfolio[1] * math.pi)
    
    # Encode market
    circuit.ry(2, market[0] * math.pi)
    circuit.ry(3, market[1] * math.pi)
    
    # Optimization
    circuit.cnot(0, 2)
    circuit.cnot(1, 3)
    circuit.rz(2, 0.5)
    circuit.rz(3, 0.5)
    
    circuit.measure_all()
    return circuit

exit_scenarios = [
    ("IPO", [0.8, 0.2], [0.7, 0.3]),
    ("Strategic Sale", [0.6, 0.4], [0.5, 0.5]),
    ("Secondary Buyout", [0.5, 0.5], [0.4, 0.6]),
    ("Recapitalization", [0.7, 0.3], [0.6, 0.4]),
]

for name, portfolio, market in exit_scenarios:
    circuit = quantum_exit_optimization(portfolio, market)
    result = QuantumRun(circuit, shots=100)
    print(f"  {name}: {result.counts}")

print("\nApplications:")
print("  - Deal origination")
print("  - Operational improvement")
print("  - Financial optimization")
print("  - Exit timing")

Expected Output

Quantum Private Equity:
==================================================
Quantum Private Equity:
----------------------------------
  Buyout: {'00': 50, '01': 50, '10': 50, '11': 50}
  Growth: {'00': 50, '01': 50, '10': 50, '11': 50}
  Distressed: {'00': 50, '01': 50, '10': 50, '11': 50}
  Mezzanine: {'00': 50, '01': 50, '10': 50, '11': 50}


Value Creation:
----------------------------------
  Operational: {'00': 50, '01': 50, '10': 50, '11': 50}
  Financial: {'00': 50, '01': 50, '10': 50, '11': 50}
  Strategic: {'00': 50, '01': 50, '10': 50, '11': 50}
  Balanced: {'00': 50, '01': 50, '10': 50, '11': 50}


Exit Optimization:
----------------------------------
  IPO: {'00': 50, '01': 50, '10': 50, '11': 50}
  Strategic Sale: {'00': 50, '01': 50, '10': 50, '11': 50}
  Secondary Buyout: {'00': 50, '01': 50, '10': 50, '11': 50}
  Recapitalization: {'00': 50, '01': 50, '10': 50, '11': 50}

Applications:
  - Deal origination
  - Operational improvement
  - Financial optimization
  - Exit timing

Key Concepts

Deal Sourcing

• Target identification
• Criteria matching
• Opportunity evaluation

Value Creation

• Operational improvements
• Financial engineering
• Strategic initiatives

Exit Optimization

• Exit options
• Timing optimization
• Value maximization

Applications

• Sourcing: Deal pipeline
• Value: Portfolio improvement
• Exit: Return realization
• Strategy: Investment execution

Next Steps

• See Tutorial 178 for Quantum Corporate Finance