Private Equity Characteristics and Performance: An Analysis of North American Venture Capital and Buyout Funds

17 Pages Posted: 14 May 2020

See all articles by Oliviero Roggi

Oliviero Roggi

University of Florence - Department of Economics, Management and Finance; Fundação Dom Cabral - Brazil

Alessandro Giannozzi

University of Florence

Tommaso Baglioni

Insper

Francesco Pagliai

University of Florence

Date Written: July 2019

Abstract

The paper investigates the relationship between fund performance and fund characteristics of North American private equity (PE) funds, by analyzing the interactions of fund size, fund sequence, and past fund performance on traditional fund return measures. The empirical evidence is based on both linear and polynomial regressions, on a sample of 345 venture capital (VC) and 411 buyout (BO) funds with vintage year over the period 1995–2010. We document a concave relationship between fund size and performance, persistence in PE performance, as well as a convex relationship between fund sequence and performance. We suggest both the optimal fund size and the optimal fund sequence number. Economic implications for investors and general partners are discussed as well.

Keywords: fund characteristics, performance persistence, private equity

Suggested Citation

Roggi, Oliviero and Giannozzi, Alessandro and Baglioni, Tommaso and Pagliai, Francesco, Private Equity Characteristics and Performance: An Analysis of North American Venture Capital and Buyout Funds (July 2019). Economic Notes, Vol. 48, Issue 2, pp. n/a-n/a, 2019, Available at SSRN: https://ssrn.com/abstract=3597062 or http://dx.doi.org/10.1111/ecno.12128

Oliviero Roggi (Contact Author)

University of Florence - Department of Economics, Management and Finance ( email )

Via delle Pandette 9
Firenze, Firenze 50129
Italy
+390552759720 (Phone)
+39055275910 (Fax)

HOME PAGE: http://www.unifi.it/p-doc2-2013-200052-R-3f2a3d30392931.html

Fundação Dom Cabral - Brazil ( email )

Avenida Princesa Diana 760, Alphaville
Nova Lima, 34000000
Brazil

Alessandro Giannozzi

University of Florence ( email )

Piazza di San Marco, 4
Florence, 50121
Italy

Tommaso Baglioni

Insper ( email )

Rua Quatá 300 - Vila Olímpia
Sao Paulo, 04546-042
Brazil

Francesco Pagliai

University of Florence

Piazza di San Marco, 4
Florence, 50121
Italy

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