How persistent is private equity performance? Evidence from deal-level data

• 成果类型: Article
• 署名作者: Braun, Reiner; Jenkinson, Tim; Stoff, Ingo
• 署名单位: Technical University of Munich; University of Oxford
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2016.01.033
• 发表日期: 2017
• 页码: 273-291
• 关键词: private equity; returns; Performance persistence; Portfolio companies

摘要

The persistence of returns is a critical issue for investors in their choice of private equity managers. In this paper, we analyse buyout performance persistence in new ways, using a unique database containing cash flow data on 13,523 portfolio company investments by 865 buyout funds. We focus on unique realized deals and find that persistence of fund managers has substantially declined as the private equity sector has matured and become more competitive. Private equity has, therefore, largely conformed to the pattern found in most other asset classes in which past performance is a poor predictor of the future. (C) 2016 Elsevier B.V. All rights reserved.