Title: Styles of private equity funds
Authors: Elise Gourier - ESSEC Business School (France) [presenting]
Ludovic Phalippou - University of Oxford (United Kingdom)
William Goetzmann - Yale University (United States)
Abstract: A methodology is provided to statistically identify the different styles of private equity funds. Styles are defined based on the dynamics of the funds' return processes, which are estimated from observed cash flows and reported net asset values. We analyze the risk-return profile of each style and investigate whether they match the self-declared categories of private equity funds. The results give insights on the diversification benefits of the different types of alternative investments.