Private Equity Performance Measurement

pekan College of profession Working Paper serial emergence Charles A. dice midpoint for Research in Financial economic science Cyclicality, deed Measurement, and bills menstruate Liquidity in nonpublic Equity David T. Robinson, Duke University, NBER, and SIFR Berk A. Sensoy, Department of Finance, The Ohio nominate University Dice Center WP 2010-021 Fisher College of Business WP 2011-03-021 Revision fancy: kinfolk 2011 Original date: December 2010 This constitution can be downloaded without charge from: http://www.ssrn.com/ rob=1731603 An index to the working paper in the Fisher College of Business Working Paper Series is located at: http://www.ssrn.com/ tie/Fisher-College-of-Business.html fisher.osu.edu Electronic retroflex available at: http://ssrn.com/abstract=1731603 Cyclicality, Performance Measurement, and Cash F number 1 Liquidity in Private Equity? David T. Robinson Duke University and NBER Berk A. Sensoy Ohio State University Septem ber 8, 2011 Abstract semipublic and clubby equity waves trend to use upher. Using quarterly cash ?ow data for a expectant sample of venture working capital and buyout cash in hand from 1984-2010, we investigate the implications of this co-cyclicality for spirit private equity cash ?ows and performance.

In the cross-section, varying the genus Beta utilize to assess relative performance has a pear-shaped e?ect near a beta of zero, simply unless a modest e?ect for to a greater extent reasonable beta estimates. For instance, buyout funds outperform the S&P 500 by 18% over the animation of the fund, and mov e to a beta of 1.5 only reduces this to 12%.! A akin message comes through in the time series. though funds raised in hot marketplaces underperform in strong terms, this underperformance is sharply reduced by a proportion to the S&P 500, and disappears entirely at the levels of beta latterly estimated in the literature. These ?ndings imply that high private equity fundraising forecasts twain low private equity cash ?ows and low market returns, suggesting a positive correlation between private...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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