Measuring PE Fund Performance

09-05-2019

Measuring PE Fund Performance

May 2019

Measuring Private Equity Fund Performance

This report explains the various metrics employed by General Partners (GPs) and Limited Partners (LPs) to arrive at a meaningful assessment of a funds success. Performance in private equity investing is traditionally measured via the internal rate of return (IRR) and multiple of money (MoM) l. Once all investments have been exited and the capital returned to limited partners, the final return determines the fund’s standing amongst its peers. However, IRR and MoM, merely provide the first layer of insight into private equity fund performance. Other metrics offer a more nuanced view

The Rise of Long-Term PE Funds

June 2018

The Emergence of Long-Term Capital in Private Equity

Private equity has seen a visible surge of GPs raising long-dated funds in recent years, with fund lives ranging from 15 to 20 years. This is a meaningful deviation from the traditional PE model of a ten-year fund. Integrating key insights from a series of interviews with industry participants including GPs, LPs, legal advisors, placement agents, and consultants, we shed some light on the inner workings of funds, investing with a longer-term horizon, and ask if they will redefine traditional private equity.

Venture Capital

Nov 2018

The Year of the Red Unicorns: A Preqin and INSEAD Study

For the first time, Chinese start-ups have attracted more funding than their US counterparts. Is China on its way to becoming the world’s largest VC market? Can its growth rate be sustained? What challenges lie ahead – and what will it take for China to move into pole position in the race for global venture capital? The study considers the pillars of a thriving VC ecosystem: 1) the supply of ideas and entrepreneurs, 2) the presence of reliable stewards of capital, 3) the availability of adequately priced risk capital, and 4) the ability to recycle capital and return it to investors.

Getting Rid of Gender Bias in Venture Capital

By Monisha Varadan, Kamal Hassan and Claudia Zeisberger

August 2019

Women-led businesses are nearly twice as prevalent in earlier funding rounds than in later rounds-almost 12 percent at accelerator and incubator stages, dropping to 8 percent at seed stage. By early-stage VC funding, women represent only 4 percent of investments. Do women find it harder to ask for money or is unconscious bias seeping in?

Y Combinator Accelerates the Hunt for Unicorns

By Claudia Zeisberger

July 2019

Y Combinator will accept all applicants to Startup School, a 10-week, free-of-charge massive open online course (MOOC), supplemented with virtual office hours and access to 15,000 founders worldwide. An unannounced number of those who complete the programme will be given a US$15,000 grant. As YC President Geoff Ralston, an INSEAD alumnus, told in a recent interview, “It’s part of our goal to maximise the amount of entrepreneurship and innovation there is in the world.”

Why Venture Capitalists Should Invest like Poker Players

By Kamal Hassan&Claudia Zeisberger

July 2018

No matter your level of experience, early-stage investments are considered high-risk gambles. Why not treat them as such?

OTHERS

Do Local Fund Managers have Home Advantage?

By Ian Potter&Claudia Zeisberger

Jan 2018

Overseas and Chinese personnel both have their merits, but one thing is clear – it is time to take stock of the development in home-grown talent.

Can ASEAN Compete with China and India for Private Capital?

By Ian Potter &Claudia Zeisberger

June 2018

Wealth generation, internet use and returning overseas talent will determine the pace of investment

Latest News, Interviews & Podcasts

Long-term fund strategies gaining ground in private equity

By S&P Global, Market Intelligence March 2019

China could dominate Venture Capital in 2019

By Lance Ng January 2019

The Rise of the Red Unicorn

By Ian Potter and Claudia Zeisberger INSEAD Knowledge August 2018

Tapping the Opportunities Offered by China Unicorns

Interview by Khairani Afifi Noordin The Edge Malaysia July 2018

How the Pennsylvania Treasurer Missed the Mark?

By Rod James, Adam Le & Isobel Markham Private Equity Intl. July 2018

Can Private Equity Reinvent Itself as Patient Capital?

By Kyle Lee & Konstantin Synetos INSEAD Knowledge July 2018

Business Model Innovation Comes to Private Equity

By Prothit Sen INSEAD Knowledge May 2018

Hello Guru – Interview with Professor Claudia Zeisberger (in Korean)

By Korea’s MAEIL January 2018

From “Barbarians” to Skilled Industrialists

By Claudia Zeisberger INSEAD Knowledge December 2017

Zeisberger Et Al, Mastering Private Equity

By Brenda Jubin Seeking Alpha November 2017

Time for Boards to See Private Equity as More Than a Financial Investor

By Claudia Zeisberger INSEAD Corporate Governance Centre Newsletter October 2017

Success Attracts New Players to Private Equity

By Claudia Zeisberger LSE Business Review October 2017