Institutional Investment in Listed Private Equity
York University - Schulich School of Business
Continuity Capital Partners
York University - Schulich School of Business; Tilburg Law and Economics Center (TILEC)
December 13, 2010
European Financial Management, Forthcoming
This paper examines institutional investors’ propensity to invest in a relatively unknown asset class of listed private equity. Based on data provided by LPEQ, Preqin and Scorpio Partnership covering 171 institutional investors in Europe in 2008-2010, we find allocations are primarily a function of size, type, location, decision-making authority and liquidity preferences. Investment in listed private equity is more commonly made by institutions that are smaller, private (not public) pension institutions, institutions that have a preference for liquidity, quick access, and administrative and cash flow management simplicity, and institutions that are based in the UK, Switzerland, Sweden and the Netherlands. As well, institutions are less likely to invest in listed private equity when investment decision-making is empowered to an alternative asset class team.
Number of Pages in PDF File: 30
Keywords: Institutional investment, pension funds, listed private equity
JEL Classification: G23, G24Accepted Paper Series
Date posted: December 14, 2010
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