Study reveals Achilles heel of mega private equity funds
| Jul 19th, 2010 | Filed under: Private Equity, Today's Post | By: Alpha Male |
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A few weeks ago, we told you about a study of US pension funds showing that smaller funds experienced better performance than their larger peers. This was counter-intuitive to us – and to several readers – given the assumption that larger funds had more resources and therefore could afford to find better investment opportunities.
It looks like small pension funds are not the only Davids than can run circles around their larger Goliath competitors. A recent study of private equity funds found that large funds earn lower returns. The study by Mark Humphrey-Jenner of Columbia University and the University of New South Wales examined the performance of 1550 fund ranging from tiny VC funds to LBO behemoths.
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