We improve public understanding of the role of private capital in the global economy. Academic and industry experts work together to generate new knowledge about private capital markets based on objective academic research.
Please join us for our upcoming research symposium November 22, 2019 in Beijing, hosted by the Tsinghua PBC School of Finance and the Institute for Private Capital (IPC).
We hope you will join us on May 28-29, 2020 at the Spring PERC Symposium held at the University of Oxford, Saïd Business School. Similar in structure and style to the longstanding PERC Symposium held in the fall in Chapel Hill, NC.
This conference serves as a forum for investment managers, institutional investors and academics to network, share ideas and stay abreast of the latest industry trends. REGISTRATION COMING SOON
The Institute for Private Capital will bring together investment professionals and academics to focus on global issues in private equity.
IPC founding member, Northern Trust, will again host a private equity research symposium on May 8th at its offices in Chicago, now in its fifth year.
 

Latest Research

Filling the U.S. Small Business Funding Gap

February 04, 2020

Despite having the deepest and most diverse capital markets in the world, the United States still struggles to provide sufficient capital to many small businesses outside of major commercial centers as well as to women-owned and minority-owned businesses regardless of size or location. This paper reviews the academic literature and provides an analysis of some recent data to gain understanding of the causes of these gaps as well as the solutions for filling the gaps. Results indicate that the Small Business Administration’s SBIC program is an effective mechanism for providing capital to underserved geographies as well as to businesses owned by women and underrepresented minorities. More

Why Defined Contribution Plans Need Private Investments

October 16, 2019

We examine the impact of including private investment funds into diversified (e.g., balanced and target date fund) portfolios that otherwise hold only public stocks and bonds. Our analysis utilizes a comprehensive sample of 2,515 U.S. private equity funds to create simulated portfolios for 1987-2017 that invest part of their overall equity allocation in these funds. We find that investing in private funds always increases average portfolio returns and reliably increases Sharpe ratios (return per unit of risk). More

Private Company Valuations by Mutual Funds

October 08, 2019

Mutual funds that hold private securities value these securities at considerably different prices. Prices vary across fund families, are updated every 2.5 quarters on average and are revised dramatically at follow-on funding events. The infrequent, but dramatic price changes yield predictable fund returns, though we find little evidence of fund investors exploiting this opportunity by buying (selling) before (after) the follow-on funding events. Consistent with fund families opportunistically marking up private securities, we find that funds near the top of league tables increase private valuations more around year-end follow-on funding events than funds ranked lower. More

Recent News & Media

CIO Compensation at Endowments and Foundations Related to Investment Returns

January 03, 2020

UNC's Matteo Binfarè and UVA's Robert Harris found a 1% increase in investment return leads to a 3% increase in the CIO’s pay, according to a recent study published this past December. More