First in the Queue: The Role of Access Privileges in Private Equity Performance

Andrea Carnelli Dompé

Pantheon Ventures (UK) LLP

Daniel Ferreira

London School of Economics - Department of Finance; European Corporate Governance Institute (ECGI); Centre for Economic Policy Research (CEPR)

Davide Ferri

affiliation not provided to SSRN

Pedro Saffi

University of Cambridge - Judge Business School

Bo Tang

London School of Economics & Political Science (LSE)

Date Written: November 17, 2021

Keywords: Private Equity, Access Privileges, Value Creation, Performance Persistence

JEL Classification: G11, G23

Suggested Citation:

Abstract

Access privileges matter in private equity markets. Funds of funds and other financial intermediaries can create value not only by selecting, but also by being able to access, better investment opportunities. We find that access-constrained funds outperform their peers, and that limited partners with access privileges tend to re-commit to access-constrained managers. The findings suggest that access privileges play an important role in explaining value creation and limited partners’ performance persistence in private markets.

Carnelli Dompé, Andrea and Ferreira, Daniel and Ferri, Davide and Saffi, Pedro A. C. and Tang, Bo, First in the Queue: The Role of Access Privileges in Private Equity Performance (November 17, 2021). Available at SSRN: https://ssrn.com/abstract=3965747 or http://dx.doi.org/10.2139/ssrn.3965747