As part of the series of the „Finance Research Seminar“, VGSF welcomes Petra Vokata from Ohio State University, Fisher College of Business to present her research paper.
Personal Webpage
Paper
Democratizing Private Markets: Private Equity Performance of Individual Investors
(joint with Cynthia Balloch, Federico Mainardi and Sangmin S. Oh)
Using new data on wealthy U.S. households, we provide the first systematic study of private equity investments by individual investors. Contrary to concerns about adverse selection, we find that private equity investments by individual investors perform similarly to those of institutions and outperform public markets. We identify three innovations that enable individuals to invest in private equity: the proliferation of funds with low minimum commitments, pooling capital via advisors, and leveraging advisors’ networks to access fund managers. Our findings demonstrate how advisors and access to private equity funds can enhance household portfolio returns.
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