Venture Capital and Other Private Equity: A Survey

By Andrew Metrick, A. Yasuda. 2011

178 citations recorded by the source corpus.

We review the theory and evidence on venture capital (VC) and other private equity: why professional private equity exists, what private equity managers do with their portfolio companies, what returns they earn, who earns more and why, what determines the design of contracts signed between (i) private equity managers and their portfolio companies and (ii) private equity managers and their investors (limited partners), and how/whether these contractual designs affect outcomes. Findings highlight the importance of private ownership, and information asymmetry and illiquidity associated with it, as a key explanatory factor of what makes private equity different from other asset classes.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/c7f340b9d57de51f66deba5d87442be75a83caab

Citations in the corpus

• Interim Fund Performance and Fundraising in Private Equity (2017, unknown): “…in GPs with prior funds that performed relatively well among their vintage-year cohorts. lack of time-weighted returns and sample selection issues make it difficult to estimate the fund manager’s risk-adjusted excess returns (alpha) using standard asset-pricing models (Metrick and Yasuda (2011)).”