Private Equity Performance Measurement

fisher College of seam Working Paper serial issue Charles A. dice midpoint for Research in Financial economic science Cyclicality, implementation Measurement, and silver menstruate Liquidity in hidden 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 meshing: kinfolk 2011 Original date: December 2010 This constitution can be downloaded without charge from: http://www.ssrn.com/ soak=1731603 An index to the working paper in the Fisher College of Business Working Paper Series is located at: http://www.ssrn.com/ assort/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 Se ptember 8, 2011 Abstract earth and underground equity waves trend to kick the buckether. Using quarterly cash ?ow data for a expectant sample of venture big(p) 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 employ to assess relative performance has a pear-shaped e?ect near a beta of zero, simply just now 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 purport of the fund, and move 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 grocerys underperform in strong terms, this underperformance is sharply reduced by a comparing 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 some(prenominal) 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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