Investor expertise and private investment selection

• 成果类型: Article
• 署名作者: Miller, Shane; Yimfor, Emmanuel; Zhang, Ye
• 署名单位: University of Michigan System; University of Michigan; Columbia University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2026.104331
• 发表日期: 2026-09
• 页码: 104331
• 关键词: Investor expertise; venture capital; PRIVATE EQUITY; asset allocation; experiment; LIMITED PARTNER PERFORMANCE; equity; attention; smart

摘要

Institutional and individual investors evaluate private market opportunities systematically differently, even facing identical choices. In a survey experiment, 593 institutional and 445 individual investors assess venture capital fund profiles with independently randomized GP characteristics. Institutions heavily weight past fund performance, consistent with risk-averse investor demand calibrated to VC markets. Individuals largely ignore performance, favoring educational credentials instead. A follow-up experiment identifies two independent mechanisms: individuals lack awareness that VC performance persists and discount quality signals for funds they perceive as inaccessible. Performance-based selection alone reduces individuals' expected returns by approximately 7%, accounting for 20% of the return gap with professionals.