The Performance of Mostly Liquidated Buyout Funds, 2000-2007 Vintage Years

23 Pages Posted: 21 Jan 2016

See all articles by Jeffrey Hooke

Jeffrey Hooke

Johns Hopkins University - Carey Business School; Focus Investment Bank

Ken C. Yook

Johns Hopkins University - Carey Business School

Stephen Hee

Yale University, Department of Economics, Students

Date Written: January 19, 2016

Abstract

We conduct a study dedicated principally to older leveraged buyout funds that have had the opportunity for multiple portfolio company liquidations, or have been fully liquidated. Examining 186 funds in the vintage years from 2000 to 2007 with complete cash flow data from the Preqin database, we find that 61% beat the S&P 500 plus 3% (a common benchmark), and 39% did not. We find that funds from the earlier vintage years had better performance relative to broad equity market benchmarks than the later years. The later vintage year funds have larger RVPIs than the early vintage year funds, most of which had been fully liquidated. In addition, we find that moderately-liquidated funds tend to have worse results than mostly-liquidated funds. Lastly, in examining a group of fund families with three or more funds, we find no strong evidence of consistency.

Keywords: private equity, performance, buyout funds

Suggested Citation

Hooke, Jeffrey and Yook, Ken C. and Hee, Stephen, The Performance of Mostly Liquidated Buyout Funds, 2000-2007 Vintage Years (January 19, 2016). Available at SSRN: https://ssrn.com/abstract=2718473 or http://dx.doi.org/10.2139/ssrn.2718473

Jeffrey Hooke

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

Focus Investment Bank ( email )

1133 20th Street, NW
Suite 200
Washington, DC 20036
United States

Ken C. Yook (Contact Author)

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States
610-725-5248 (Phone)
610-725-5224 (Fax)

Stephen Hee

Yale University, Department of Economics, Students

28 Hillhouse Ave
New Haven, CT 06520-8268
United States

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