With the increasing risk of a recessionary market environment, many investors are asking themselves what impact economic cycles have on the private equity industry.
During the selection process for private equity managers, institutional investors often evaluate quantitative metrics such as fund size and past performance. But new research suggests that they may need to look beyond these factors to identify managers who can generate outsized returns.
According to a new research paper, investors may have a better chance of choosing top performing PE funds by analyzing qualitative information contained in investment strategy documents than they do by evaluating quantitative factors, such as past performance and the pace of fundraising.
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