TY - UNPB
T1 - There is Something Special About Large Investors
T2 - Evidence From a Survey of Private Equity Limited Partners
AU - Da Rin, M.
AU - Phalippou, L.
N1 - Pagination: 57
PY - 2014
Y1 - 2014
N2 - Abstract: We show that investors with more dollar amount allocated to private equity conduct more thorough due diligence and have different investment criteria. The fraction allocated to private equity, the organization’s total asset under management, and other investor characteristics that broadly capture prestige, experience, and long-term relationship do not explain these differences in effort and beliefs. We also document several novel facts that contribute to opening the blackbox of the investment process in alternative asset classes. An implication of our results is that the emergence of gigantic institutional investors may come with a radical change in the beliefs and actions of the marginal investor.
AB - Abstract: We show that investors with more dollar amount allocated to private equity conduct more thorough due diligence and have different investment criteria. The fraction allocated to private equity, the organization’s total asset under management, and other investor characteristics that broadly capture prestige, experience, and long-term relationship do not explain these differences in effort and beliefs. We also document several novel facts that contribute to opening the blackbox of the investment process in alternative asset classes. An implication of our results is that the emergence of gigantic institutional investors may come with a radical change in the beliefs and actions of the marginal investor.
KW - Institutional Investors
KW - Investor Heterogeneity
KW - Due Diligence Private Equity
M3 - Discussion paper
VL - 2014-016
T3 - CentER Discussion Paper
BT - There is Something Special About Large Investors
PB - Finance
CY - Tilburg
ER -