RT Journal Article SR Electronic T1 Private Equity Funds of Funds vs. Funds: A Performance Comparison JF The Journal of Private Equity FD Institutional Investor Journals SP 43 OP 58 DO 10.3905/jpe.2011.14.2.043 VO 14 IS 2 A1 Nathalie Gresch A1 Rico von Wyss YR 2011 UL https://pm-research.com/content/14/2/43.abstract AB Based on a comprehensive sample of 1,641 funds, this article investigates the performance of private equity funds of funds versus direct fund investments. On a risk-adjusted basis, funds of funds outperform the aggregated direct funds. When separated into categories such as buyout, venture, and fund of funds, buyout funds exhibit the most attractive risk–return profile. Analyzing how fund performance depends on macroeconomic variables, direct funds generate pro-cyclical returns: Returns increase with high public market performance and economic growth as well as declining corporate bond yields. For funds of funds, we cannot observe such a pattern.TOPICS: Private equity, statistical methods, analysis of individual factors/risk premia, performance measurement