How do Private Equity Fees vary across Public Pensions? / Juliane Begenau, Emil Siriwardane.

Format:

Book

Author/Creator:

Begenau, Juliane.

Contributor:

National Bureau of Economic Research.

Siriwardane, Emil.

Series:

Working Paper Series (National Bureau of Economic Research) no. w29887.

NBER working paper series no. w29887

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2022.

Summary:

We study how investment fees vary within private-capital funds. Net-of-fee return clustering suggests that most funds have two tiers of fees, and we decompose differences across tiers into both management and performance-based fees. Managers of venture capital funds and those in high demand are less likely to use multiple fee schedules. Some investors consistently pay lower fees relative to others within their funds. Investor size, experience, and past performance explain some but not all of this effect, suggesting that unobserved traits like negotiation skill or bargaining power materially impact the fees that investors pay to access private markets.

Notes:

Print version record

March 2022.