Pantheon Ventures (UK) LLP
London School of Economics - Department of Finance; European Corporate Governance Institute (ECGI); Centre for Economic Policy Research (CEPR)
affiliation not provided to SSRN
University of Cambridge - Judge Business School
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:
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