Size signals success: Evidence from real estate private equity
Change log
Authors
Krautz, S
Fuerst, Franz https://orcid.org/0000-0001-5317-1469
Abstract
Anecdotal evidence suggests that clout and connections matter more in private equity fundraising than do actual performance. In this article, a unique real estate private equity dataset with buy-side and sell-side information is created by the authors to construct and analyze stacked interaction networks for each vintage year. Calculating and regressing centrality measures for industry embeddedness, the authors find that fund managers can benefit from their established connections to plan sponsors while fundraising. By adding fund size into the equation, they demonstrate that the total capital under management and the size of previous funds have a significant and positive effect on fundraising speed.
Description
Keywords
Real Estate, Private Equity, Fundraising, Market Concentration, Network Analysis, Industry Embeddedness, Centrality Measures
Journal Title
Journal of Portfolio Management
Conference Name
Journal ISSN
0095-4918
2168-8656
2168-8656
Volume Title
41
Publisher
With Intelligence LLC
Publisher DOI
Sponsorship
The authors acknowledge
the support of the Cambridge University Land Society in
enabling this research.