Financial intermediation in private equity: How well do funds of funds perform?

• 成果类型: Article
• 署名作者: Harris, Robert S.; Jenkinson, Tim; Kaplan, Steven N.; Stucke, Ruediger
• 署名单位: University of Virginia; University of Oxford; University of Chicago
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.04.013
• 发表日期: 2018
• 页码: 287-305
• 关键词: private equity; Fund of funds; financial intermediation

摘要

This paper focuses on funds of funds (FOFs) as a form of financial intermediation in private equity (both buyout and venture capital). After accounting for fees, FOFs provide returns equal to or above public market indices for both buyout and venture capital. While FOFs focusing on buyouts outperform public markets, they underperform direct fund investment strategies in buyout. In contrast, the average performance of FOFs in venture capital is on a par with results from direct venture fund investing. This suggests that FOFs in venture capital (but not in buyouts) are able to identify and access superior performing funds. (C) 2018 Elsevier B.V. All rights reserved.