Venture capital and private equity research has grown considerably in recent times with a heterogenous set of themes being explored. Using a large corpus from the Web of Science, this study used bibliometric analysis to present a comprehensive encapsulation of the fields’ geographical focus,...

We propose a simple and intuitive measure of annualized excess return of investments in private equity (PE) funds, as well as in similar vehicles that hold hard-to-values assets. Our ‘Direct Alpha’ method is well-founded theoretically and dominates the existing approaches to convert fund...

Measures of private equity performance based on cash flows do not account for a discount-rate risk premium that is a component of CAPM alpha. We create secondary market PE indices and find that PE discount rates vary considerably. NAVs are too smooth because they fail to reflect variation in...

I investigate whether and how private equity fund managers (GPs) inflate their interim fund valuations (net asset values, or NAVs) during fundraising periods. Specifically, I study the extent to which the GPs inflate NAVs by managing valuation assumptions (e.g., valuation multiples), influencing...

We survey the literature on the private equity partnership arrangement from the perspective of an outside investor (limited partner). We examine how the partnership arrangement fits into a broader portfolio of investments, and we consider the methods and difficulties in performance measurement,...

We survey the literature on the private equity partnership arrangement from the perspective of an outside investor (limited partner). We examine how the partnership arrangement fits into a broader portfolio of investments, and we consider the methods and difficulties in performance measurement,...

We calculate composite indices to compare the attractiveness of 27 European countries for institutional investments into the Venture Capital and Private Equity asset class. To achieve this we use 42 different parameters, and propose an aggregation structure that allows for benchmarking on more...

We propose a methodology to evaluate private equity investments by using investor-specific stochastic discount factors. The methodology allows a direct way of decomposing an investor's private-equity return into a risk-compensation and an "alpha". It also helps determine whether a given investor...

Private equity (PE) firms increasingly drift toward investing in software companies. In this paper, we empirically examine this trend and compare software drifts to general style drifts. We use an unbalanced panel of more than 7,000 PE firms that made investments between 1985 and 2020. Our...

This paper proposes a theory of the equilibrium liquidity premia of private equity funds and explores its asset-pricing implications. The theory is based on the notion that investors are exposed to the risk of facing surprise liquidity shocks, which upon arrival force them to liquidate their...