The Illiquidity Puzzle: Theory and Evidence from Private Equity

By Josh Lerner, Antoinette Schoar. 2004

254 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/b957393fbdc13463797fda36d3b770c63b743322

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Citations in the corpus

The Investment Behavior of Private Equity Fund Managers (2003, unknown): “3 Recent work by Lerner and Schoar (2003) argues that incentive problems between PEFs and investors can be alleviated by the PEF using illiquidity to screen for investors who are less subject to liquidity shocks.”
Share restrictions and asset pricing: Evidence from the hedge fund industry (2007, background): “From the standpoint of the database, a spinoff fund or an additional share class is treated as a new data point.(49)”
Do Liquidity Measures Measure Liquidity (2009, unknown): “Using three annual measures, Lesmond, Ogden, and Trzcinka (1999) find that LOT dominates Roll and Zeros.”
Local Overweighting and Underperformance: Evidence from Limited Partner Private Equity Investments (2013, background): “Gompers and Lerner (1996) and Lerner and Schoar (2004) examine the contracts entered into between investors and funds, and how they are affected by the nature of both the targeted 7 investments and the LPs. Lerner, Schoar and Wongsunwai (2007) explore heterogeneity in the returns that different…”
The performance of reverse leveraged buyouts (2009, unknown): “(Lerner & Schoar, 2004)”
New low-frequency spread measures (2009, unknown): “Lesmond et al. (1999) and Hasbrouck (2004) develop additional proxies for the effective spread using low-frequency (daily) data.”
Private equity returns and disclosure around the world (2010, unknown): “factors that affect fundraising (Gompers and Lerner, 1998, Lerner and Schoar, 2002b, Kaplan and”
Liquidity Risk and Venture Capital Finance (2005, unknown): “Financial Management • Winter 2005 82 Finally, our evidence is consistent with the view that illiquidity is one reason why VCs require high returns on their investments (Gompers and Lerner, 1999a, 2001; see also Barry, Muscarella, Perry, and Vetsuypens, 1990; Megginson and Weiss, 1991; Lerner and Sc”
Private Equity Performance: Returns, Persistence and Capital Flows (2005, unknown): “23 for VC funds is higher than that found by Ljungqvist and Richardson (2003), but lower than those found by Jones and Rhodes-Kropf (2003) and (for individual deals) Cochrane (2003).”
Entrepreneurial Finance: Banks Versus Venture Capital (2008, unknown): “As shown by Lerner and Schoar (2004), venture capital funds impose liquidity restrictions on their investors so as to shield themselves from liquidity shocks. Such shocks would be especially problematic for these funds because of their lack of diversification and their highly information-intensive a”
Informational Holdup and Performance Persistence in Venture Capital (2014, unknown): “Lerner and Schoar (2004) argue that LPs typically demand wide-ranging information rights to inform their reinvestment decision.”
Venture Capital and Other Private Equity: A Survey (2011, unknown): “Focusing on the lemons problem that arises when existing LPs face liquidity shocks and GPs need to raise funds from new investor, (Lerner and Schoar 2004) find”