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 Active Management


Venture Debt as Bridge Financing

May 13, 2024

We show that venture debt often acts as bridge financing to an equity round or acquisition. We argue that venture lenders have distinct skill sets from traditional venture capitalists (VCs) that make them the natural investors while the company awaits the resolution of important strategic uncertainty. More

What Do We Know About Institutional-Quality Hedge Funds?

May 09, 2024

Using publicly available sources such as trade press and Form ADV filings, we compile a list of 561 “institutional-quality” hedge fund managers that each have at least 1 billion USD in primary hedge fund assets under management.

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Risk-Adjusting the Returns to Private Debt Funds

March 26, 2024

Private debt funds are the fastest growing segment of the private capital market. We evaluate their risk-adjusted returns, applying a cash-flow based method to form a replicating portfolio that mimics their risk profiles. More

Scale, Scope, and Speed in Private Capital Funds

March 20, 2024
White Paper

The substantial growth in both size and scope of the private fund industry has resulted in much discussion about the effects of this growth on performance. In this white paper we examine how a range of size and growth characteristics are related to market-adjusted fund performance. More

Board Diversity in Private Vs. Public Firms

March 13, 2024

We test whether differences in ownership structure influence race and gender diversity in corporate boards. We find that privately-owned, venture-backed companies appoint a lower proportion of minorities and women to their boards compared to publicly traded firms. More

Private Equity and Debt Contract Enforcement: Evidence from Covenant Violations

February 06, 2024

Using the Shared National Credit supervisory data, we find Private Equity (PE) sponsored firms violate loan covenants more often than comparable non-PE firms. However, upon covenant violation, PE-sponsored borrowers experience relatively smaller reductions in credit commitments, suggesting lenders are more lenient with these borrowers. More

Loss Avoidance in Private Equity

February 01, 2024

Private equity investors rely on reported fund performance to make informed investment decisions. This paper provides evidence that buyout funds manage multiples of invested capital (MOICs) for portfolio companies to avoid incurring and reporting capital losses. In the distribution of deal-level MOICs, we document an

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Undervaluation Induced LBOs

January 29, 2024

This paper shows that market timing drives private equity activity. Using mutual fund fire sales as a source of target undervaluation, we show that both public-toprivate and private-to-private deals are more common following a fire sale. More

Are Direct Lenders More Like Banks or Arm’s-Length Investors?

January 24, 2024

I study whether direct lenders, which have been displacing banks in private equity (PE) buyouts, lend more like banks or arm’s-length investors. Using a novel database for direct lender-held loans to PE buyouts, I find that nearly all senior loans originated by direct lenders include financial covenants. More

Is the U.S. IPO Market About to Thaw? IPC Research Notes

January 04, 2024

The U.S. IPO market is in the midst of an unusually long cold spell. Investors are concerned about how the IPO market, and more broadly the market for private equity exits, has affected distributions to their portfolios. This has led us to wonder how the current episode compares to historical IPO activity and if recent signs (e.g., the recent filing by Shein) suggest the market is thawing. More