How Persistent is Private Equity Performance? Evidence from Deal-Level Data

Braun, Reiner, Jenkinson, Tim and Stoff, Ingo (2017) How Persistent is Private Equity Performance? Evidence from Deal-Level Data. Journal of Financial Economics, 123. pp. 273-291.

Abstract

The persistence of returns is a critical issue for investors in their choice of private equity managers. In this paper we analyse buyout performance persistence in new ways, using a unique database containing cash-flow data on 13,523 portfolio company investments by 865 buyout funds. We focus on unique realized deals and find that persistence of fund managers has substantially declined as the private equity sector has matured and become more competitive. Private equity has, therefore, largely conformed to the pattern found in most other asset classes in which past performance is a poor predictor of the future.

Item Type: Article
Keywords: Private equity, returns, persistence, portfolio companies, finance
Subject(s): Finance
Date Deposited: 20 Sep 2013 15:01
Last Modified: 07 Feb 2017 15:30
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/4784

Actions (login required)

Edit View Edit View