Institutional Investment in Listed Private Equity

31 Pages Posted: 24 Jan 2010 Last revised: 6 Feb 2010

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Grant Fleming

Continuity Capital Partners

Sofia Johan

Florida Atlantic University - Finance; Tilburg Law and Economics Center (TILEC)

Multiple version iconThere are 2 versions of this paper

Date Written: January 24, 2010

Abstract

This paper examines institutional investors’ propensity to invest in a relatively unknown asset class of listed private equity. Based on data provided by LPEQ and Preqin covering 100 institutional investors in Europe in 2008, 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, and institutions that are based in the UK. As well, institutions are more likely to invest in listed private equity when investment decision-making is not empowered to a private equity team, an alternative asset class team, or a board/investment committee, but are more likely when decision-making is delegated to an equities team.

Keywords: Institutional investment, pension funds, listed private equity, Europe

JEL Classification: G23, G24

Suggested Citation

Cumming, Douglas J. and Fleming, Grant Alan and Johan, Sofia A., Institutional Investment in Listed Private Equity (January 24, 2010). Available at SSRN: https://ssrn.com/abstract=1541502 or http://dx.doi.org/10.2139/ssrn.1541502

Douglas J. Cumming (Contact Author)

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Grant Alan Fleming

Continuity Capital Partners ( email )

GPO Box 314
Canberra, Australian Capital Territory 2601
Australia

Sofia A. Johan

Florida Atlantic University - Finance ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

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