Organizational Forms and Risk of Listed Private Equity
Year: 2009
Type: article
Abstract: This article investigates the stock performance of listed private equity and develops a classification of vehicles according to their organizational structure. The authors identify and examine 274 liquid listed private equity entities in the period from 1986 to 2008. The listed private equity shows a Dimson beta of 1.7 without any significant excess return, and vehicles differ strongly depending on their organizational form. Market risk is high in internally managed vehicles but low in externally managed ones. The authors conclude that different sources of cash flows, such as management fees and carried interest, can account for these risk characteristics. Precautions must be taken, therefore, when using specific listed private equity vehicles as a proxy for traditional private equity funds. TOPICS:Private equity, performance measurement, analysis of individual factors/risk premia, statistical methods
Source: The Journal of Private Equity
Authors: Henry Lahr, Florian T Herschke
Institution: Technical University of Munich
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2172144157