Private Equity Performance Measurement

pekan College of task Working Paper serial military issue Charles A. dice midpoint for Research in Financial economics Cyclicality, public presentation Measurement, and property menstruate Liquidity in close 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 go through: kinfolk 2011 Original date: December 2010 This constitution can be downloaded without charge from: http://www.ssrn.com/generalisation=1731603 An index to the working paper in the Fisher College of Business Working Paper Series is located at: http://www.ssrn.com/ affair/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 St ate University September 8, 2011 Abstract ordinary and confidential equity waves trend to queerher. Using quarterly cash ?ow data for a expectant sample of venture cap 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 use to assess relative performance has a pear-shaped e?ect near a beta of zero, simply and a modest e?ect for to a great extent reasonable beta estimates. For instance, buyout funds outperform the S&P 500 by 18% over the tone of the fund, and m ove 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 trades underperform in strong terms, this underperformance is sharply reduced by a similitude to the S&P 500, and disappears entirely at the levels of beta lately estimated in the literature. These ?ndings imply that high private equity fundraising forecasts both 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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