Showing articles with tag: returns to scale
Decreasing Returns or Reversion to the Mean? The Case of Private Equity Fund Growth
This article analyzes the interaction between the growth and the performance of the two most prominent groups of private equity (PE) funds: buyout funds and venture capital (VC) funds.
These funds are usually structured as closed-end, limited-life vehicles. Therefore, in order to keep earning fees, PE firms periodically attempt to…
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