Brown, Gregory
[Author]
;
Harris, Robert S.
[Other];
Hu, Wendy
[Other];
Jenkinson, Tim
[Other];
Kaplan, Steven N.
[Other];
Robinson, David T.
[Other]National Bureau of Economic Research
Can Investors Time Their Exposure to Private Equity?
Published:
Cambridge, Mass: National Bureau of Economic Research, 2020
Published in:NBER working paper series ; no. w26755
Extent:
1 Online-Ressource; illustrations (black and white)
Language:
English
DOI:
10.3386/w26755
Identifier:
Reproduction note:
Hardcopy version available to institutional subscribers
Origination:
Footnote:
System requirements: Adobe [Acrobat] Reader required for PDF files
Mode of access: World Wide Web
Description:
Private equity performance, both for buyouts and venture capital, has been highly cyclical: periods of high fundraising have been followed by periods of low performance. Despite this seemingly predictable variation, we find modest gains, at best, to pursuing realistic, investable strategies that time capital commitments to private equity. This occurs, in part, because investors can only time their commitments to funds; they cannot time when commitments are called or when investments are exited. There is a high degree of time-series correlation in net cash flows even across commitment strategies that allocate capital in a very different manner over time