Pension Funds and Private Equity Investments

Forskningsenhed: CEBR


Abstract:
Pension funds have recently both internationally and nationally increased their investments in private equity dramatically. Whereas asset pricing and investment theory long have studied the risk and return characteristics of public equity, little is known about the risk and return to investments in private equity. The lack of knowledge about private equity as an asset class is striking given the fact that the private equity market is as important as the public equity market in terms of size and growth. Without a better understanding of the risk and return characteristics of private equity, the increased flow of pension savings into private equity can be characterized as a risky gamble.

Read the full project description here

Journal article:
Institutional Investors and Private Equity by Kasper Meisner Nielsen, Copenhagen Business School and CEBR, Review of Finance 2008 12(1):185-219

You can read the Working papers The Return to Pension Funds' Private Equity Investments: Another Piece to the Private Equity Premium Puzzle? by Kasper Meisner Nielsen, 2005-25, Centre for economic and Business Research and
Institutional Investors and Private Equity by Kasper Meisner Nielsen, Copenhagen Business School and CEBR, February 2007 here

and the final Journal article Institutional Investors and Private Equity by Kasper Meisner Nielsen, Copenhagen Business School and CEBR, Review of Finance 2008 12(1):185-219 here