News
2022 PERC Symposium Best Paper Award
This year’s award goes to Minmo Gahng and Blake Jackson (University of Florida, Warrington College of Business) for their paper Selling Private Equity Fees. Their paper examines private equity (PE) firms’ minority stake sales and the impact of these sales on agency frictions with fund investors. More
Is the U.S. Economy at a Boiling Point, or Just Simmering?
As the U.S. continues to face COVID-19 and supply chain disruptions, experts debate just how worked up the economy is in its current state. This Kenan Insight serves as the first in a two-part point-counterpoint series, in which Kenan Institute Executive Director Greg Brown and Chief Economist Gerald Cohen hash out the arguments both for and against an overheating economy. More
New IPC Tool Helps Companies Evaluate DEI Goals
The Institute for Private Capital’s newly-released interactive model that aims to help private equity leaders assess diversity, equity and inclusion (DEI) goals was featured in a report by Ernst & Young. More
2021 PERC Symposium Best Paper Award
The Private Equity Research Consortium (PERC) recently convened on November 11-12, in Chapel Hill for the 13th annual research symposium. Over the course of two days, academic researchers and industry practitioners gathered for a discussion of the most pressing issues in private equity. In keeping with tradition, attendees voted for the Best Paper presented at PERC. This year’s award goes to Nicola Giommetti and Morten Sørensen for their paper Optimal Allocation to Private Equity. More
The Evolution of Private Equity Fund Value
On average, venture capital and buyout funds experience a performance fall off after seven to eight years, while the cross-sectional dispersion amongst them increases. IPC’s Gregory Brown joined Jian Zhang, Partner from Adams Street Partners, and Wendy Hu, Senior Researcher at Burgiss, for a webcast on August 19 to discuss their research findings, as well as the implications for GPs, LPs, the secondaries market, and for asset allocation in PE. More
John L. Bowman, Senior Managing Director for the CAIA Association, and Greg Brown, Research Director at the Institute for Private Capital, discuss Brown’s article “The Evolution of Private Equity Fund Value” as it appeared in the spring edition of CAIA’s official Member publication The Journal of Alternative Investments.
IPC Welcomes New York State Common Retirement Fund as a New Member
We are pleased to announce that New York State Common Retirement Fund joined the Institute for Private Capital as a member earlier this year. The New York State Common Retirement Fund is the third largest public pension plan in the United States, providing retirement security for over one million New York State and Local Retirement System members, retirees and beneficiaries. More
IPC is Pleased to Announce a Data Partnership with the Hedge Fund Research and Intelligence Organization PivotalPath
Today, IPC announces a data partnership with PivotalPath, a hedge fund research and intelligence organization, which, we believe, establishes a similar growth path for research in hedge funds. More
Debt and Leverage in Private Equity: A Survey of Existing Results and New Findings
This paper examines leverage and debt financing in the private equity buyout market. We provide an overview of how debt is utilized in buyout investment structures and a review of existing theoretical and empirical academic literature. The analysis also includes results from new data sources with information on deal structure and performance since the global financial crisis (GFC). We document that leverage ratios (Net Debt / EBITDA) have increased substantially in recent years and the increase is even more pronounced after unwinding EBITDA “adjustments” which have become increasingly large. More
Has Persistence Persisted in Private Equity? Evidence from Buyout and Venture Capital Funds
We present new evidence on the persistence of U.S. private equity (buyout and venture capital) funds using cash-flow data sourced from Burgiss’s large sample of institutional investors. Previous research, studying largely pre-2000 data, finds strong persistence for both buyout and venture capital (VC) firms. Using ex post or most recent fund performance (as of June 2019), we confirm the previous findings on persistence overall as well as for pre-2001 and post-2000 funds. More
