U.S. Private Equity Growth Triggered by Global Economies’ GDPs

Abstract

The purpose of this study is to explore the relationship between a U.S. private equity index and the gross domestic product (GDP) growth rates of eight major world economies: the United States, the United Kingdom, Switzerland, Japan, Germany, France, Canada, and Australia. Analysis reduces the dataset down to two explanatory components that best explain the variation in the data. Two methods of analysis have been performed to establish the robustness of the relationship between the U.S. private equity index and the reduced components representing the GDP growth rates of major economies.

TOPICS: Private equity, developed, performance measurement, statistical methods