The disintermediation of financial markets: Direct investing in private equity

• 成果类型: Article
• 署名作者: Fang, Lily; Ivashina, Victoria; Lerner, Josh
• 署名单位: INSEAD Business School; Harvard University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.12.002
• 发表日期: 2015
• 页码: 160-178
• 关键词: Financial intermediation; PRIVATE EQUITY; Direct investment; Co-investment

摘要

We examine 20 years of direct private equity investments by seven large institutions. These direct investments perform better than public market indices, especially buyout investments and those made in the 1990s. Outperformance by the direct investments, however, relative to the corresponding private equity fund benchmarks is limited and concentrated among buyout transactions. Co-investments underperform the corresponding funds with which they co-invest, due to an apparent adverse selection of transactions available to these investors, while solo transactions outperform fund benchmarks. Investors' ability to resolve information problems appears to be an important driver of solo deal outcomes. (C) 2015 Elsevier B.V. All rights reserved.