|
Based on your IP address, your paper is being delivered by:
|
 |
 |
 |
 |
 |
New York, USA
Processing request.
|
Illinois, USA
Processing request.
|
Brussels, Belgium
Processing request.
|
Seoul, Korea
Processing request.
|
California, USA
Processing request.
|
If you have any problems downloading this paper,
please click on another Download Location above, or
File name: SSRN-id2023909. ; Size: 280K
|
|
Returns and Risks to Private Equity
Mara Faccio
Purdue University - Krannert School of Management; Centre for Economic Policy Research (CEPR); European Corporate Governance Institute (ECGI)
Maria-Teresa Marchica
University of Manchester - Manchester Business School
John J. McConnell
Purdue University
Roberto Mura
University of Manchester - Manchester Business School
November 11, 2011
Abstract:
We assess returns and risks to private equity investors from 35 countries for the time interval of 1996-2008. We find that returns to private equity (measured as return on book equity (ROE)) are significantly higher than ROEs to publicly traded equity. Using customary measures to adjust for risk, the spread between private and public equity returns is sufficiently high to justify the idiosyncratic risk borne by undiversified private equity investors. Despite their apparently high undiversified portfolio risk, investors in non-publicly traded firms appear to allocate their capital efficiently.
Number of Pages in PDF File: 59
Keywords: Private equity
JEL Classification: G10, G15, G30
working papers series
Download This Paper
Date posted: March 9, 2011
; Last revised: March 17, 2012
Suggested CitationFaccio, Mara, Marchica, Maria-Teresa, McConnell, John J. and Mura, Roberto, Returns and Risks to Private Equity (November 11, 2011). Available at SSRN: http://ssrn.com/abstract=1781070 or http://dx.doi.org/10.2139/ssrn.1781070
|
| Feedback to SSRN (Beta) |
|
|
People who downloaded this paper also downloaded:
1.
Private Equity and the Resolution of Financial Distress
By
Per Strömberg,
Edith Hotchkiss, ...
2.
Do Private Equity Fund Managers Earn Their Fees? Compensation, Ownership, and Cash Flow Performance
By
David Robinson
and
Berk Sensoy
3.
Cyclicality, Performance Measurement, and Cash Flow Liquidity in Private Equity
By
David Robinson
and
Berk Sensoy
4.
Private Equity Performance: What Do We Know?
By
Robert Harris,
Tim Jenkinson, ...
5.
Do Private Equity Sponsor Returns Result from Wealth Transfers and Short-Termism?
Evidence from a Comprehensive Sample of Large Buyouts and Exit Outcomes
By
Jarrad Harford
and
Adam Kolasinski
6.
Private Equity Funds’ Performance, Risk and Selection
By
Ludovic Phalippou
7.
Private Equity Performance and Liquidity Risk
By
Francesco Franzoni,
Eric Nowak, ...
8.
CEO Gender, Corporate Risk-Taking, and the Efficiency of Capital Allocation
By
Mara Faccio,
Maria-teresa Marchica, ...
9.
Private Equity Lemons? Evidence on Value Creation in Secondary Buyouts
By
Ann-kristin Achleitner
and
Christian Figge
10.
Private Equity Performance and Liquidity Risk
By
Francesco Franzoni,
Eric Nowak, ...
|
|
|
|
