Journal article
Financial intermediation in private equity: How well do funds of funds perform?
- Abstract:
- This paper focuses on funds of funds (FOFs) as a form of financial intermediation in private equity (both buyout and venture capital). After accounting for fees, FOFs provide returns equal to or above public market indices for both buyout and venture capital. While FOFs focusing on buyouts outperform public markets, they underperform direct fund investment strategies in buyout. In contrast, the average performance of FOFs in venture capital is on a par with results from direct venture fund investing. This suggests that FOFs in venture capital (but not in buyouts) are able to identify and access superior performing funds.
- Publication status:
- Published
- Peer review status:
- Peer reviewed
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- Files:
-
-
(Preview, Accepted manuscript, pdf, 609.3KB, Terms of use)
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- Publisher copy:
- 10.1016/j.jfineco.2018.04.013
Authors
- Publisher:
- Elsevier
- Journal:
- Journal of Financial Economics More from this journal
- Volume:
- 129
- Issue:
- 2
- Pages:
- 287-305
- Publication date:
- 2018-05-07
- Acceptance date:
- 2017-06-08
- DOI:
- EISSN:
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1879-2774
- ISSN:
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0304-405X
- Keywords:
- Pubs id:
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pubs:698917
- UUID:
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uuid:38e81150-39fb-4024-ad65-99acdae0e736
- Local pid:
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pubs:698917
- Source identifiers:
-
698917
- Deposit date:
-
2017-06-09
- ARK identifier:
Terms of use
- Copyright holder:
- Elsevier BV
- Copyright date:
- 2018
- Notes:
- Copyright © 2018 Elsevier B.V. This is the accepted manuscript version of the article. The final version is available online from Elsevier at: https://doi.org/10.1016/j.jfineco.2018.04.013
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