Whom to follow: Individual Manager Performance and Persistence in Private Equity Investments

31 Pages Posted: 29 Oct 2019

See all articles by Reiner Braun

Reiner Braun

Technische Universität München (TUM) - TUM School of Management

Nils Dorau

Technische Universität München (TUM)

Tim Jenkinson

University of Oxford - Said Business School; European Corporate Governance Institute (ECGI)

Daniel Urban

Erasmus University Rotterdam (EUR) - Department of Business Economics

Date Written: October 25, 2019

Abstract

Using a sample of 3,977 individual buyout managers with more than 10,330 deal involvements in 5,030 unique buyout transactions we investigate individual manager performance and its persistence. We find evidence for deal-level gross PME performance persistence at this level of analysis. In explaining the cross-section of deal returns, the individual is around four times more important than the PE organization. Interestingly, none of the typical human capital variables (age, gender, MBA, PE tenure) has explanatory power in the cross-section of deal returns.

Suggested Citation

Braun, Reiner and Dorau, Nils and Jenkinson, Tim and Urban, Daniel, Whom to follow: Individual Manager Performance and Persistence in Private Equity Investments (October 25, 2019). Proceedings of Paris December 2019 Finance Meeting EUROFIDAI - ESSEC. Available at SSRN: https://ssrn.com/abstract=3475460

Reiner Braun (Contact Author)

Technische Universität München (TUM) - TUM School of Management ( email )

Arcisstr. 21
Munich, Deutschland 80333
Germany
+498928925181 (Phone)
+498928925188 (Fax)

HOME PAGE: http://www.ef.wi.tum.de/

Nils Dorau

Technische Universität München (TUM) ( email )

Arcisstrasse 21
Munich, 80333
Germany

Tim Jenkinson

University of Oxford - Said Business School ( email )

Park End Street
Oxford, OX1 1HP
United Kingdom
+44 1865 288916 (Phone)
+44 1865 288831 (Fax)

HOME PAGE: http://www.sbs.oxford.edu/timjenkinson

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Daniel Urban

Erasmus University Rotterdam (EUR) - Department of Business Economics ( email )

Netherlands

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