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:
Can Investors Time Their Exposure to Private Equity?
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
Performance of Private Credit Funds: A First Look
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
Using the unique laboratory of university endowments, we study the effects of expertise and networks on investment performance. More
Activism and Empire Building
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
Buy Low, Sell High? Do Private Equity Fund Managers Have Market Timing Abilities?
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?
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
Hedge fund activism is an important monitoring mechanism associated with substantial improvements in the governance and performance of targets. More
Adverse Selection and the Performance of Private Equity Co-Investments
In this paper we use a large sample of buyout and venture capital coinvestments to test how such deals compare with the remaining fund investments. 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
Winning a Deal in Private Equity: Do Educational Networks Matter?
In this paper, we explore the importance of one potential source of competitive advantage – educational networks – in both identifying and winning deals. More