Interim fund performance and fundraising in private equity

• 成果类型: Article
• 署名作者: Barber, Brad M.; Yasuda, Ayako
• 署名单位: University of California System; University of California Davis
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2017.01.001
• 发表日期: 2017
• 页码: 172-194
• 关键词: private equity; venture capital; institutional investors; Fund manager evaluation

摘要

General partners (GPs) in private equity (PE) report the performance of an existing fund while raising capital for a follow-on fund. Interim performance has large effects on fundraising outcomes. The impact is greatest when backed by exits and for low reputation GPs. Faced with these incentives, GPs time their fundraising to coincide with periods of peak performance through two strategies: (1) exit and fundraise and (2) net asset value (NAV) management. Consistent with the former, performance peaks are greatest for funds with high realization rates. Consistent with the latter, low reputation GPs with low realization rates experience performance peaks and erosions in performance after fundraising. (C) 2017 Elsevier B.V. All rights reserved.