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:
Performance of Private Credit Funds: A First Look
We review the recent trends within private credit, provide an overview of various strategies, describe returns since 2004 and compare private credit to several benchmark indices in order to develop a preliminary view of performance and risk across various private credit strategies. 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
Short Selling Risk
Short sellers face unique risks, such as the risk that stock loans become expensive and the risk that stock loans are recalled. More
Informed Trading Volume and Asset Prices: The Role for Aggressive Investors
We examine the trading behavior of particularly aggressive investors, those who contribute the most to daily trading volume, and provide new evidence that is consistent with the presence of informational advantages. More
Within-Bank Spillovers of Real Estate Shocks
We estimate the reaction of banks to capital losses induced by reductions in real estate prices. More
Why Are REITS Currently So Expensive?
For the last several years, the price of listed real estate stocks has been unusually high relative to dividends. I explore whether low interest rates or low risk premia can account for the high valuation ratios and find that they cannot. More
Financial Intermediation in Private Equity: How Well Do Funds of Funds Perform?
This paper focuses on funds of funds (FOFs) as a form of financial intermediation in private equity (both buyout and venture capital). More