Research

Our Research Strategy

At IPC, data, research and education improve understanding of the role of private capital in the global economy. An essential first step for generating quality research is access to reliable data.  Thus, our top priority is making research-quality data sources widely available to academic researchers.

Access to data on private investments presents challenges, including confidentiality concerns, the proprietary nature of many datasets, and the diffuse nature of private investments.  However, we believe that these challenges are best addressed by a deliberate systematic approach through a combined academic effort.  In many cases, data owners welcome the benefits derived from confidential analysis of their data by objective academic researchers.

IPC currently focuses on three research areas:

Private Equity Real Estate Hedge Funds


Can Investors Time Their Exposure to Private Equity?

August 28, 2018
Working Paper

We find modest gains, at best, to pursuing more realistic, investable strategies that time capital commitments to private equity. There is a high degree of time-series correlation in net cash flows even across commitment strategies that allocate capital in a very different manner over time. More

When Investor Incentives and Consumer Interests Diverge – Private Equity in Higher Education

August 17, 2018

This paper uses private equity buyouts to study a transition from lower- to higher-powered profit-maximizing incentives in higher education. Relative to closely-held private firms or diffusely-held publicly traded firms, private equity-owned firms have particularly high-powered incentives to maximize profits (Jensen 1989). More

Performance of Private Credit Funds: A First Look

July 02, 2018

Although private credit funds have rapidly grown into a standalone asset class over the last decade, little is known about the aggregate performance of these funds. To provide a first look at absolute and relative performance, we utilize the Burgiss database of 476 private credit funds with nearly $480 billion in committed capital, including a subset of 155 direct lending funds. More

How do Financial Expertise and Networks Affect Investing? Evidence from the Governance of University Endowments

May 20, 2018

Using the unique laboratory of university endowments, we study the effects of expertise and networks on investment performance. More

Activism and Empire Building

March 22, 2018
Working Paper

We focus on the role of activists in the market for corporate control and provide evidence that activists curb incentives to engage in empire building acquisitions, limiting the scope of one of the most destructive forces in public companies. More

Budgeting for Capital Calls – A VaR-Inspired Approach

March 01, 2018

Investors with commitments to private capital funds need to maintain sufficient reserves to service capital calls arising from those funds. More

Buy Low, Sell High? Do Private Equity Fund Managers Have Market Timing Abilities?

March 01, 2018

Market timing ability is one way for investment managers to achieve high returns on managed assets. An asset class which frequently engages in buying and selling companies is private equity (PE). More

Buy Low, Sell High? Do Private Equity Fund Managers Have Market Timing Abilities?

March 01, 2018
Working Paper

In this paper we focus on whether PE fund managers are able to use their discretion over timing to create returns for investors – in other words, whether they have market timing ability. More

CEO Compensation and Real Estate Prices: Are CEOs Paid for Pure Luck?

January 10, 2018
Working Paper

We study the sensitivity of CEO compensation to luck using real estate prices to differentiate changes in compensation due to pure luck from changes in compensation due to reactions to lucky events. More

Governance under the Gun: Spillover Effects of Hedge Fund Activism

December 19, 2017
Working Paper

Hedge fund activism is an important monitoring mechanism associated with substantial improvements in the governance and performance of targets. More