We investigate whether access to information prior to an IPO generates a trading advantage after the IPO. We find that limited partners (LPs) of venture capital funds obtain high returns when they invest in newly listed stocks backed by their funds. These returns are not explained by LPs'...

We find that institutional investors use industry-level information that they obtain from their private equity investments to better allocate capital among publicly-traded equities and, thereby, earn positive excess returns. We use court rulings regarding the Freedom of Information Act as an...