Since the 1980s, there has been an ongoing discussion about the role of private equity (PE) in the economy. As investors have flocked to the asset class, voices critical of the negative social impact of PE have grown louder. In this article, we examine what is known from the academic literature about the effects of private equity on corporate productivity, the returns for investors, and possible broader economic and social consequences. More
Paying for Performance in Private Equity: Evidence from VC Partnerships
We offer the first empirical analysis connecting the timing of general partner (GP) compensation to private equity fund performance. More
What Do Different Commercial Data Sets Tell Us About Private Equity Performance?
This paper examines private equity (both buyout and venture funds) performance around the globe using four data sets from leading commercial sources. More
Can Investors Time Their Exposure to Private Equity?
Private equity markets are highly cyclical. The aggregate amount of capital committed to the sector varies substantially from peak to trough, and many have observed that periods of high fundraising activity are followed by periods of low absolute performance for the asset class (see Harris, Jenkinson, and Kaplan, among others). This raises an important question: is it possible to market-time the allocations to private equity to avoid the cyclicality of performance? More