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Venture Capital and Other Private Equity : A Survey
Metrick, Andrew - 2014
We review the theory and evidence on venture capital (VC) and other private equity: why professional private equity exists, what private equity managers do with their portfolio companies, what returns they earn, who earns more and why, what determines the design of contracts signed between (i)...
Persistent link: https://www.econbiz.de/10013068835
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The Liquidity Cost of Private Equity Investments : Evidence from Secondary Market Transactions
Nadauld, Taylor - 2016
An important cost of investing in private equity is the illiquidity of these investments. In response to this illiquidity, a secondary market for transacting stakes in private equity funds has developed. This paper uses proprietary data from a leading intermediary to understand the magnitude and...
Persistent link: https://www.econbiz.de/10012987121
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Private Equity and Covid-19
Gompers, Paul A.; Kaplan, Steven N.; Mukharlyamov, Vladimir - 2021
We survey more than 200 private equity (PE) managers from firms with $1.9 trillion of assets under management (AUM) about their portfolio performance, decisionmaking and activities during the Covid-19 pandemic. Given that PE managers have significant incentives to maximize value, their actions...
Persistent link: https://www.econbiz.de/10013240331
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Benchmarking the Returns to Venture
Woodward, Susan E. - 2004
We describe a new index of the current and historical returns to venture-type capital. The conceptual basis for the index is the value of a continuously reinvested value-weighted portfolio of all venture-backed and similar pre-public companies. It provides a metric for private equity comparable...
Persistent link: https://www.econbiz.de/10012785970
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Should Benchmark Indices Have Alpha? Revisiting Performance Evaluation
Cremers, Martijn - 2012
Standard Fama-French and Carhart models produce economically and statistically significant nonzero alphas, even for passive benchmark indices such as the S&P 500 and Russell 2000. We find that these alphas arise primarily from the disproportionate weight the Fama-French factors place on small...
Persistent link: https://www.econbiz.de/10013106957
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The Benchmark Inclusion Subsidy
Kashyap, Anil K. - 2018
. Benchmarking generates additional, inelastic demand for assets inside the benchmark. This leads to a “benchmark inclusion subsidy …
Persistent link: https://www.econbiz.de/10012906786
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Mutual Fund Performance Evaluation : a Comparison of Benchmarks and Benchmark Comparisons
Lehmann, Bruce N. - 2010
Our primary goal in this paper is to ascertain whether the absolute and relative rankings of managed funds are sensitive to the benchmark chosen to measure normal performance. We employ the standard CAPM benchmarks and a variety of APT benchmarks to investigate this question. We found that there...
Persistent link: https://www.econbiz.de/10012762952
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Is There Too Much Benchmarking in Asset Management?
Kashyap, Anil K.; Kovrijnykh, Natalia; Li, Jian; … - 2022
We propose a model of asset management in which benchmarking arises endogenously, and analyze its unintended welfare … prices. Benchmarking inflates asset prices and gives rise to crowded trades, thereby reducing the effectiveness of incentive … crowding, opts for less benchmarking and less incentive provision. We also show that asset management costs are lower with …
Persistent link: https://www.econbiz.de/10013291778
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Pay for Performance from Future Fund Flows : The Case of Private Equity
Chung, Ji-Woong - 2010
Lifetime incomes of private equity general partners are affected by their current funds' performance through both carried interest profit sharing provisions, and also by the effect of the current fund's performance on general partners' abilities to raise capital for future funds. We present a...
Persistent link: https://www.econbiz.de/10013138086
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A Model of Private Equity Fund Compensation
Choi, Wonho Wilson - 2011
This paper analyzes the economics of the private equity fund compensation. We build a novel model to estimate the expected revenue to fund managers as a function of their investor contracts. In particular, we evaluate the present value of the fair-value test (FVT) carried interest scheme, which...
Persistent link: https://www.econbiz.de/10013118838