Whom to follow: Individual Manager Performance and Persistence in Private Equity Investments
31 Pages Posted: 29 Oct 2019
Date Written: October 25, 2019
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.
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