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Institutional Investment in Listed Private Equity |
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| Authors: | Douglas Cumming Grant Fleming Sofia A. Johan |
| Affiliation: | 1. York University – Schulich School of Business, 4700 Keele Street, Toronto, Ontario M3J 1P3, Canada E‐mail: Douglas.Cumming@gmail.com;2. Partner, Continuity Capital Partners Level 8, 12 Moore Street Canberra, ACT 2601, Australia and Visiting Fellow School of Finance, Actuarial Studies & Applied Statistics, College of Business and Economics, Australian National University Canberra, ACT 0200, Australia;3. Tilburg Law and Economics Center, Postbus 90153, 5000 LE Tilburg, The Netherlands and York University ‐ Schulich School of Business, 4700 Keele Street, Toronto, Ontario M3J 1P3, Canada E‐mail: sofiajohan@email.com |
| Abstract: | This paper examines institutional investors’ propensity to invest in a relatively unknown asset class of listed private equity. Based on data provided by LPEQ, Preqin and Scorpio Partnership covering 171 institutional investors in Europe in 2008–2010, we find allocations are primarily a function of size, type, location, decision‐making authority and liquidity preferences. Investment in listed private equity is more commonly made by institutions that are smaller, private (not public) pension institutions, institutions that have a preference for liquidity, quick access, and administrative and cash flow management simplicity, and institutions that are based in the UK, Switzerland, Sweden and the Netherlands. As well, institutions are less likely to invest in listed private equity when investment decision‐making is empowered to an alternative asset class team. |
| Keywords: | institutional investment pension funds listed private equity G23 G24 |