Limited partner performance and the maturing of the private equity industry

• 成果类型: Article
• 署名作者: Sensoy, Berk A.; Wang, Yingdi; Weisbach, Michael S.
• 署名单位: University System of Ohio; Ohio State University; California State University System; California State University Fullerton; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.02.006
• 发表日期: 2014
• 页码: 320-343
• 关键词: Private equity performance; institutional investors

摘要

We evaluate the performance of limited partners' (LPs') private equity investments over time. Using a sample of 14,380 investments by 1,852 LPs in 1,250 buyout and venture capital funds started between 1991 and 2006, we find that the superior performance of endowment investors in the 1991-1998 period, documented by prior literature, is mostly due to their greater access to the top-performing venture capital partnerships. In the subsequent 19992006 period, endowments no longer outperform, no longer have greater access to funds that are likely to restrict access, and do not make better investment selections than other types of institutional investors. Nevertheless, all investor types' private equity investments continue to outperform public markets on average. We discuss how these results are consistent with the general maturing of the industry, as private equity has transitioned from a niche, poorly understood area to a ubiquitous part of institutional investors' portfolios. (C) 2014 Elsevier B.V. All rights reserved.