The Performance of Private Equity Funds Export

@article{citeulike:4267359, abstract = {The performance of private equity funds as reported by industry associations and previous research is overstated. A large part of performance is driven by inflated accounting valuation of ongoing investments and we find a bias toward better performing funds in the data. We find an average net-of-fees fund performance of 3\% per year below that of the S\&P 500. Adjusting for risk brings the underperformance to 6\% per year. We estimate fees to be 6\% per year. We discuss several misleading aspects of performance reporting and some side benefits as a first step toward an explanation. 10.1093/rfs/hhn014}, author = {Phalippou, Ludovic and Gottschalg, Oliver}, citeulike-article-id = {4267359}, citeulike-linkout-0 = {http://dx.doi.org/10.1093/rfs/hhn014}, citeulike-linkout-1 = {http://rfs.oxfordjournals.org/content/22/4/1747.abstract}, citeulike-linkout-2 = {http://rfs.oxfordjournals.org/content/22/4/1747.full.pdf}, citeulike-linkout-3 = {http://www.ingentaconnect.com/content/oup/revfin/2009/00000022/00000004/art00011}, day = {1}, doi = {10.1093/rfs/hhn014}, issn = {0893-9454}, journal = {Rev. Financ. Stud.}, keywords = {pe, vc}, month = {April}, number = {4}, pages = {1747--1776}, posted-at = {2009-06-03 18:08:13}, priority = {2}, publisher = {Oxford University Press}, title = {The Performance of Private Equity Funds}, url = {http://dx.doi.org/10.1093/rfs/hhn014}, volume = {22}, year = {2009} }

TY - JOUR ID - citeulike:4267359 L3 - citeulike-article-id:4267359 N2 - The performance of private equity funds as reported by industry associations and previous research is overstated. A large part of performance is driven by inflated accounting valuation of ongoing investments and we find a bias toward better performing funds in the data. We find an average net-of-fees fund performance of 3% per year below that of the S&P 500. Adjusting for risk brings the underperformance to 6% per year. We estimate fees to be 6% per year. We discuss several misleading aspects of performance reporting and some side benefits as a first step toward an explanation. 10.1093/rfs/hhn014 IS - 4 JF - Rev. Financ. Stud. SN - 0893-9454 EP - 1776 TI - The Performance of Private Equity Funds PB - Oxford University Press VL - 22 SP - 1747 KW - pe KW - vc AU - Phalippou, Ludovic AU - Gottschalg, Oliver PY - 2009/04/01/ UR - http://dx.doi.org/10.1093/rfs/hhn014 ER -