PT  - JOURNAL ARTICLE
AU  - Nathalie Gresch
AU  - Rico von Wyss
TI  - Private Equity Funds of Funds vs. Funds: <em>A Performance Comparison</em>
AID  - 10.3905/jpe.2011.14.2.043
DP  - 2011 Feb 28
TA  - The Journal of Private Equity
PG  - 43--58
VI  - 14
IP  - 2
4099  - https://pm-research.com/content/14/2/43.short
4100  - https://pm-research.com/content/14/2/43.full
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