Over 80% of investors revealed that assessment of past performance is a key factor when conducting due diligence on private equity fund managers, notes Preqin’s recent survey.
In its “Private Equity Spotlight” newsletter for July 2014, Preqin highlights that there is indeed a correlation between the fund raising success of certain fund types and their risk-return profiles.
Decide private equity fund manager performance based on strategy
According to the Preqin report, an examination of the risk-return relationship of different private equity strategies, through the median and standard deviation of net IRRs can facilitate investors select fund types aligned to their own risk-return needs.
By analyzing over 7,000 funds, Preqin identified the risk-return profiles of the main private equity fund types. The...
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