The author presents private equity fund returns in absolute terms and relative to the public market. study is based on a unique, hand-collected dataset containing 531 funds 25,130 cash flow data points, representing 45% of Swiss pension funds’ investments. Analysis shows cross-sectional mean internal rate return 9% for direct funds, 18% buyout –4% venture 12% funds. Furthermore, have outperformed broader market indexes by 19% over lifetime fund, with being best performing subgroup....

Using a hand-collected dataset of 531 private equity funds, the author shows that macroeconomic conditions influence fund returns. He finds weak economic growth, low corporate bond yields, and stock market valuations during period when investments are taking place favor Moreover, positive change in growth rising over lifetime also support For example, yields gross domestic product investment together explain between 9% 29% variance internal rates return. Being robust to different sample...

This paper studies the relationship between portfolio diversification and fund performance, based on an unexplored, hand-collected dataset of buyout funds. The comprises detailed information at level companies, which allows measuring concentration portfolios towards individual industrial, geographical focus. Our results suggest that within, but not across industries, associates with higher performance. We do find a significant These partly contradict documented in prior literature.

<h3>Practical Applications Summary</h3> <b>Daniel Steger</b>, of <b>EIC Partners AG</b> in Zurich provides new research on private equity funds that will be interest to both academics and practitioners. Building a unique database from detailed fund-level information, he seeks bring clarity fund returns absolute terms relative the public markets. Steger finds PE tend outperform markets, but because results are heterogeneous, investors’ vary widely by type they choose, benchmarks used measure funds.