Interim fund performance and fundraising in private equity

Autor: Ayako Yasuda, Brad M. Barber
Rok vydání: 2017
Předmět:
Zdroj: Barber, BM; & Yasuda, A. (2017). Interim fund performance and fundraising in private equity. Journal of Financial Economics, 124(1), 172-194. doi: 10.1016/j.jfineco.2017.01.001. UC Davis: Retrieved from: http://www.escholarship.org/uc/item/01h178mf
Journal of Financial Economics, vol 124, iss 1
ISSN: 0304-405X
DOI: 10.1016/j.jfineco.2017.01.001
Popis: © 2017 Elsevier B.V. General partners (GPs) in private equity (PE) report the performance of an existing fund while raising capital for a follow-on fund. Interim performance has large effects on fundraising outcomes. The impact is greatest when backed by exits and for low reputation GPs. Faced with these incentives, GPs time their fundraising to coincide with periods of peak performance through two strategies: (1) exit and fundraise and (2) net asset value (NAV) management. Consistent with the former, performance peaks are greatest for funds with high realization rates. Consistent with the latter, low reputation GPs with low realization rates experience performance peaks and erosions in performance after fundraising.
Databáze: OpenAIRE
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