Private equity performance : returns, persistence, and capital flows

Deskripsi

This paper investigates the performance and capital in flows of private equity partnerships. Average fund returns (net of fees) approximately equal the S & P 500 although substantial heterogeneity across funds exists. Returns persist strongly across subsequent funds of a partnership. Better performing partnership are more likely to raise follow-on funds and larger funds. This relationship is concave, so top performing partnership grow proportionally less than average performers. At the industry level, market entry and fund performance are procyclical ; however, established funds are less sensitive to cycles than new entrants. .Printed Journal