Construction of data set and variables
The term ‘private’ is indicative of one of the main challenges for empirical research of the PE industry. There is no liquid secondary market for PE investments comparable to public stock exchanges. Transactions are traded in private environments, and therefore, detailed information on PE investments is unavailable to the public. As long as the parties involved agree to keep transaction information private, no data is available to outsiders. Access to comprehensive data on PE transactions requires the collaboration of insiders.
KeywordsPrivate Equity Probit Regression Portfolio Company European Fund Fund Size
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- 28.See also Ljungqvist & Richardson (2003a), footnote 15.Google Scholar
- 36.For a detailed explanation of probit regression see Green (2003).Google Scholar
- 38.For a recent example compare Schoar (2002).Google Scholar
- 42.For a more detailed discussion of the advantages and disadvantages of various return measures for PE funds see Kaserer & Diller (2004a).Google Scholar