RT Journal Article SR Electronic T1 How Investors Can Utilize Performance Track
Records to Make Investment Decisions JF The Journal of Private Equity FD Institutional Investor Journals SP 24 OP 26 DO 10.3905/jpe.2014.17.4.024 VO 17 IS 4 A1 Stuart Taylor YR 2014 UL https://pm-research.com/content/17/4/24.abstract AB We looked at the relationship between the performance of predecessor and successor funds (and therefore how far predecessor performance can be used to predict successor performance), and assessed whether fund performance at four or six years can be used to predict the eventual performance of a fund. What we found is that there is a significant correlation between the performance of predecessor and successor funds, and also that you can get a good indication of a fund’s eventual performance from its performance at four and six years. This shows that investors can get meaningful information from reviewing performance of the immediate predecessor to the fund they are considering, rather than only being able to review older funds that are closer to the end of their fund lives.TOPICS: Private equity, manager selection, performance measurement, portfolio construction