Private Equity and Venture Capital Fund Performance: Evidence from a Large Sample of Israeli Limited Partners

Alon Brav, Guy Lakan and Yishay Yafeh

No 18372, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We assemble cash flow data on all investments by Israeli pension providers in private equity and venture capital funds over nearly 20 years to evaluate their realized performance which has been mostly unavailable for non-US-based funds and limited partners. We obtain three main results: (i) The performance experienced by Israeli LPs has been slightly below the performance derived from the US-based literature and data sources. This finding appears to be driven by both limited access to top performing, seasoned, US funds, as well as by limited skill in selecting first-time US funds; (ii) Investments in local Israeli funds have outperformed investments in foreign funds, which we attribute to both superior access to, and superior selection skills of, local funds; (iii) We compare our data and results to those based on Preqin, one of the most commonly used commercial data bases, and find that it tends to omit small funds as well as funds with poor performance, both within and outside the US. While Preqin may provide reliable estimates of industry-wide performance, it may not always reflect the actual returns realized by non-US based limited partners.

Date: 2023-08
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP18372 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:18372

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP18372

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().