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The importance of size in private equity: Evidence from a survey of limited partners

Abstract:
Using a comprehensive survey, we show that investors with a larger capital allocation to private equity are more specialized − measured by the degree to which the investor focuses on private equity rather than other classes of investments − and have a wider scope of due diligence and investment activities. Other investor characteristics (experience, type, location, compensation structure, number of funds under management) play no role. In particular, Endowments are not special according to the survey measures. These results are consistent with the changing LP-GP relationship in private equity as capital is increasingly concentrated in the hands of large investors.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1016/j.jfi.2016.07.001

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Institution:
University of Oxford
Division:
SSD
Department:
Said Business School
Role:
Author


Publisher:
Elsevier
Journal:
Journal of Financial Intermediation More from this journal
Volume:
31
Pages:
64-76
Publication date:
2016-07-11
Acceptance date:
2016-07-04
DOI:
ISSN:
1042-9573


Keywords:
Pubs id:
pubs:634532
UUID:
uuid:e085cc1d-67b2-4bff-a23f-6a2f97a9cc09
Local pid:
pubs:634532
Source identifiers:
634532
Deposit date:
2016-07-18
ARK identifier:

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