Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
This article investigates the stock performance of listed private equity and develops a classification of vehicles according to their organizational structure. The authors identify and examine 274 liquid listed private equity entities in the period from 1986 to 2008. The listed private equity shows a Dimson beta of 1.7 without any significant excess return, and vehicles differ strongly depending on their organizational form. Market risk is high in internally managed vehicles but low in externally managed ones. The authors conclude that different sources of cash flows, such as management fees and carried interest, can account for these risk characteristics. Precautions must be taken, therefore, when using specific listed private equity vehicles as a proxy for traditional private equity funds.
- © 2009 Pageant Media Ltd
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600