Determinants of Sovereign Wealth Fund Investment in Private Equity versus Public Equity

2012 ◽  
Author(s):  
Sofia A. Johan ◽  
April M. Knill ◽  
Nathan Mauck
Keyword(s):  
Private Equity ◽  
Sovereign Wealth Fund ◽  
Public Equity ◽  
Fund Investment

Sovereign wealth fund investment and the return-to-risk performance of target firms

2012 ◽  
Vol 21 (2) ◽  
pp. 315-340 ◽  
Author(s):  
April M. Knill ◽  
Bong Soo Lee ◽  
Nathan Mauck
Keyword(s):  
Sovereign Wealth Fund ◽  
Target Firms ◽  
Fund Investment

scholarly journals Beware of Venturing into Private Equity

2009 ◽  
Vol 23 (1) ◽  
pp. 147-166 ◽  
Author(s):  
Ludovic Phalippou
Keyword(s):  
Private Equity ◽  
Governance Structure ◽  
Agency Conflicts ◽  
Stock Market Index ◽  
Compensation Contracts ◽  
Market Index ◽  
Standard And Poor's ◽  
Equity Funds ◽  
Private Equity Funds ◽  
Public Equity

As a step towards understanding whether a private equity governance structure reduces overall agency conflicts relative to a public equity governance structure (as is often argued), this paper describes the contracts between private equity funds and investors, and the returns earned by investors. The paper sets the stage with a puzzle: the average performance of private equity funds is above that of the Standard and Poor's 500—the main public stock market index—before fees are charged, but below that benchmark after fees are charged. Why are the payments to private equity buyout funds so large? Why does the marginal investor invest in buyout funds? I explore one potential answer (and probably the most controversial): that some investors are fooled. I show that the fee contracts for these funds are opaque. Considering this and the way that compensation contracts bury, in details, costly provisions that are difficult to justify on the basis of proper incentive alignment, it would be premature to assert that the agency conflicts are lower in private equity than in public equity.

scholarly journals Sovereign Wealth Fund Investment Patterns and Performance

2010 ◽  
Author(s):  
Bernardo Bortolotti ◽  
Veljko Fotak ◽  
William Miracky ◽  
William L. Megginson
Keyword(s):  
Sovereign Wealth Fund ◽  
And Performance ◽  
Fund Investment ◽  
Investment Patterns

Practical Applications of Private Equity Valuations and Public Equity Performance

2019 ◽  
Vol 22 (Supplement) ◽  
pp. 1.1-6
Author(s):  
Megan Czasonis ◽  
Mark Kritzman ◽  
David Turkington
Keyword(s):  
Private Equity ◽  
Practical Applications ◽  
Public Equity

Sovereign Wealth Funds and Private Equity

2017 ◽  
Author(s):  
Mike Wright ◽  
Kevin Amess
Keyword(s):  
Private Equity ◽  
Investment Strategy ◽  
Fixed Income ◽  
Direct Control ◽  
Sovereign Wealth Funds ◽  
Different Types ◽  
Equity Funds ◽  
Institutional Capital ◽  
Expansion Stage ◽  
Public Equity

While the vast majority of SWFs invest in public equity and fixed income vehicles, about half invest in private equity (PE). PE includes several different types of funds investing in companies at different stages of development. Some 78% of SWFs investing in PE invest in buyouts stage funds; 72% in venture capital stage funds; 66% in growth stage funds, while 56% invest in funds investing in companies at the expansion stage. Only 41% have a strategy to invest in distressed company funds while 38% invest in the secondaries funds market. Some 14% of institutional capital raised by PE equity funds in 2015 came from sovereign wealth. This chapter argues that SWF investment in PE funds is more likely to be part of an investment strategy that seeks to maximize returns because investment in PE funds does not afford the SWF direct control over firms bought using PE funds.

Open-market purchases of public equity by private equity investors: Size and home-bias effects

2010 ◽  
Vol 62 (6) ◽  
pp. 562-576 ◽  
Author(s):  
Olaf Stotz ◽  
Gabrielle Wanzenried ◽  
Karsten Döhnert
Keyword(s):  
Private Equity ◽  
Home Bias ◽  
Open Market ◽  
Public Equity
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