Private equity performance and capital flows: Evidence from China |
| |
| Affiliation: | 1. School of Finance, Southwestern University of Finance and Economics, Wenjiang District, Chengdu, Sichuan 611130, China;2. Accounting and Finance Department, College of Business & Public Policy, University of Alaska Anchorage, Anchorage, AK 99508-4614, USA;3. Research Institute of Economics and Management, Southwestern University of Finance and Economics, Wenjiang District, Chengdu, Sichuan 611130, China;1. Stetson School of Business and Economics (SSBE), Mercer University, 1501 Mercer University Drive, Macon, GA 31207, United States;2. Surveillance Analyst, Cambridge Investment Research Inc., 1776 Pleasant Plain Road, Fairfield, IA 52556, United States;3. Florida Atlantic University, 777 Glades Road, Boca Raton, FL 33431, United States;1. College of Business Administration, University of Bahrain (Bh), Bahrain;2. IDRAC Business School, France;3. IPAG Business School, France;1. School of Finance, Southwestern University of Finance and Economics, Wenjiang District, Chengdu, Sichuan, China;2. Accounting and Finance Department, College of Business & Public Policy, University of Alaska Anchorage, Anchorage, AK 99508-4614, USA;1. Vlerick Business School, Reep 1, 9000 Gent, Belgium;2. Ghent University, Reep 1, 9000 Gent, Belgium;3. Imperial College Business School and Ghent University, South Kensington Campus, London SW7 2AZ, United Kingdom |
| |
| Abstract: | For more than 1500 private equity funds in China over the period from 1992 to 2013, we construct fund level performance metrics with investment level return data and examine performance and capital flows. The median (mean) fund IRR, net of fees, is 9.0% (51.7%), based on a sample that controls for survivorship bias. Fund IRRs are neither related to fund own characteristics, such as fund size, nor to overall market conditions around the time when the fund is raised. Competition reduces fund performance: returns are lower when there are many competitors entering the industry at the same time. Although experienced partnerships are more likely to raise a follow-on fund and to raise more capital, fund performance is not related to general partnership (GP) investment experience. Further, there is no performance persistence across funds managed by the same GP. Lastly, there is some evidence of investor maturity when judged on GPs' historical performance. This evidence characterizes a burgeoning yet immature PE industry in China. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
