Prolonged Private Equity Holding Periods: Six Years Is the New Normal

IF 0.4 Q4 BUSINESS, FINANCE
Juha Joenväärä, Juho Mäkiaho, Sami Torstila
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引用次数: 3

Abstract

The high internal rates of return sought by private equity funds are highly sensitive to portfolio company holding periods. The authors examine the determinants of holding periods for a sample of European buyouts from 2000 to 2015. Their results establish that the average holding period has lengthened to 5.8 years in the period after the Global Financial Crisis. What explains this fact? The European sample allows the authors to control for both portfolio-company-level and fund-level differences. They first rule out that the increase is fully driven by changes in exit markets. Increased competition in European private equity markets remains a plausible complementary mechanism.
私募股权持有期限延长:六年是新常态
私人股本基金追求的高内部回报率对投资组合公司的持有期高度敏感。作者研究了2000年至2015年欧洲收购样本的持有期决定因素。他们的研究结果表明,在全球金融危机之后,平均持有期已延长至5.8年。如何解释这一事实?欧洲样本允许作者控制投资组合-公司层面和基金层面的差异。他们首先排除了这种增长完全是由退出市场的变化驱动的可能性。加强欧洲私人股本市场的竞争,仍是一种合理的补充机制。
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来源期刊
CiteScore
1.50
自引率
14.30%
发文量
40
期刊介绍: The Journal of Alternative Investments (JAI) provides you with cutting-edge research and expert analysis on managing investments in hedge funds, private equity, distressed debt, commodities and futures, energy, funds of funds, and other nontraditional assets. JAI is the official publication of the Chartered Alternative Investment Analyst Association (CAIA®). JAI provides you with challenging ideas and practical tools to: •Profit from the growth of hedge funds and alternatives •Determine the optimal mix of traditional and alternative investments •Measure and track portfolio performance •Manage your alternative investment portfolio with proven risk management practices
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