Private equity performance: can you learn the recipe for success?

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dc.contributor Aalto University en
dc.contributor Aalto-yliopisto fi
dc.contributor.advisor Önal, Bunyamin Nykänen, Tommi 2018-03-28T12:42:04Z 2018-03-28T12:42:04Z 2017
dc.description.abstract In this thesis, I study the relationship between private equity fund managers’ experience and fund returns. Previous private equity research has focused mainly on the performance persistence of fund returns and the contribution of this paper is to study the learning effect of private equity funds’ general partners. The data used in this thesis is collected from the SDC Platinum VentureXpert and the EurekaHedge Private Equity database. I restrict the study to US buyout and venture capital funds with vintages from 1980 to 2001. The VentureXpert data has an extensive coverage of funds in 1980’s and 1990’s whereas the EurekaHedge contains data on more recent funds. To investigate experience, I use the fund sequence as a proxy for the general partner’s experience. To investigate the performance, I study the effect of experience on the successful divestment rate of the portfolio companies as well as different performance measure multiples that are commonly used in private equity research. The central findings of the study imply that the managers’ experience correlates highly with fund returns particularly as for venture capital. The same relationship is observable for buyout funds, as well, but not to the same extent. I also find a negative correlation between the fund size and the performance as for VC funds. en
dc.format.extent 24
dc.format.mimetype application/pdf en
dc.language.iso en en
dc.title Private equity performance: can you learn the recipe for success? en
dc.type G1 Kandidaatintyö fi Kauppakorkeakoulu fi School of Business en
dc.contributor.department Rahoituksen laitos fi
dc.subject.keyword private equity en
dc.subject.keyword performance en
dc.subject.keyword manager experience en
dc.subject.keyword fund sequence en
dc.identifier.urn URN:NBN:fi:aalto-201803281863
dc.type.ontasot Bachelor's thesis en
dc.type.ontasot Kandidaatintyö fi
dc.programme Rahoitus fi

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