Can investors time their exposure to private equity?

Journal Article (Journal Article)

Private equity performance, both for buyouts and venture capital, has been highly cyclical: periods of high fundraising have been followed by periods of low performance. Despite this seemingly predictable variation, we find modest gains, at best, to pursuing realistic, investable strategies that time capital commitments to private equity. This occurs, in part, because investors can only time their commitments to funds; they cannot time when commitments are called or when investments are exited. There is a high degree of time-series correlation in net cash flows even across commitment strategies that allocate capital in a very different manner over time.

Full Text

Duke Authors

Cited Authors

  • Brown, G; Harris, R; Hu, W; Jenkinson, T; Kaplan, SN; Robinson, DT

Published Date

  • February 1, 2021

Published In

Volume / Issue

  • 139 / 2

Start / End Page

  • 561 - 577

International Standard Serial Number (ISSN)

  • 0304-405X

Digital Object Identifier (DOI)

  • 10.1016/j.jfineco.2020.08.014

Citation Source

  • Scopus