On the performance of private equity funds

Abstract

I explored the historic performance of Private Equity, utilizing absolute measures Net IRR and Net Multiple, alongside the relative performance measure Public Market Equivalents. Analyzing data obtained from Preqin, we examine factors influencing performance, including fund size, General Partner experience, macroeconomic indicators and prior performance. Our key findings are 1) Private Equity funds consistently outperform public benchmarks on average; 2) Private Equity fund performance is positively impacted by the performance of previous funds managed by the same General Partner.