Come to the private side: The returns and risks of private equity funds and funds of funds

dc.contributorAalto Universityen
dc.contributorAalto-yliopistofi
dc.contributor.advisorJoenväärä, Juha
dc.contributor.authorAhdekivi, Jaakko
dc.contributor.departmentRahoituksen laitosfi
dc.contributor.schoolKauppakorkeakoulufi
dc.contributor.schoolSchool of Businessen
dc.date.accessioned2023-01-22T17:04:31Z
dc.date.available2023-01-22T17:04:31Z
dc.date.issued2022
dc.description.abstractIn this thesis I examine the returns that private equity and venture capital funds have yielded to investor between 1984 and 2019 with focus on returns between 2010 and 2019. I also examine the returns and risks of private equity funds of funds and their risk-return profile. To determine the returns, I use the IRR and TVPI of each vintage year. In addition, I discuss the public market equivalent (PME) approach to returns comparisons and provide a rough estimate of the PME for PE and VC funds. To determine the risks, I use standard deviation of IRRs as a measure of risk. I find that private equity and venture capital funds have yielded excess returns compared to the public market. Secondly, I observe that this is the case also for private equity funds of funds. Thirdly, I find that funds of funds provide lower risk and are only partially exposed to same return factors as individual private equity funds.fi
dc.format.extent38
dc.format.mimetypeapplication/pdfen
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/119056
dc.identifier.urnURN:NBN:fi:aalto-202301221410
dc.language.isofien
dc.programmeRahoitusen
dc.subject.keywordPrivate Equityfi
dc.subject.keywordVenture Capitalfi
dc.subject.keywordIRRfi
dc.subject.keywordTVPIfi
dc.subject.keywordPMEfi
dc.subject.keywordFund of fundsfi
dc.titleCome to the private side: The returns and risks of private equity funds and funds of fundsfi
dc.titleCome to the private side: The returns and risks of private equity funds and funds of fundsen
dc.typeG1 Kandidaatintyöfi
dc.type.ontasotBachelor's thesisen
dc.type.ontasotKandidaatintyöfi
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