The liquidity cost of private equity investments: Evidence from secondary market transactions

• 成果类型: Article
• 署名作者: Nadauld, Taylor D.; Sensoy, Berk A.; Vorkink, Keith; Weisbach, Michael S.
• 署名单位: Brigham Young University; Vanderbilt University; Brigham Young University; University System of Ohio; Ohio State University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.11.007
• 发表日期: 2019
• 页码: 158-181
• 关键词: private equity; Secondary market for private equity funds; liquidity; transaction costs

摘要

This paper uses proprietary data from a leading intermediary to explain the magnitude and determinants of transaction costs in the secondary market for private equity stakes. Most transactions occur at a discount to net asset value. Buyers average an annualized public market equivalent of 1.023 compared with 0.976 for sellers, implying that buyers outperform sellers by a market-adjusted 5 percentage points annually. Both the cross-sectional pattern of transaction costs and the identity of sellers and buyers suggest that the market is one in which relatively flexible buyers earn returns by supplying liquidity to investors wishing to exit. (C) 2018 Elsevier B.V. All rights reserved.