The 2011 HEC - Dow Jones Private Equity Performance Ranking

18 November 2011

For the third consecutive year, HEC Paris Professor Oliver Gottschalg has just published his one-of-a-kind ranking for the Private Equity sector, drawing on a long-running academic study into the industry’s performance.

The ranking lists the Top 20 PE firms in terms of aggregate performance rates between 1998 and 2007. With this ranking, Professor Gottschalg answers the question: “Which firm(s) generated the best performance for their investors over the past years?

The Private Equity industry is notorious for being opaque and access to any data is chronically difficult. In particular, little is known about the performance and competitive behavior of the key PE Firms. While performance rankings exists for many other areas (the best ‘business school’, the best ‘place to work’, the best ‘stock market analyst’ etc), nothing worth that name exists in PE.

Until recently, the only available rankings for Private Equity were based on size alone, which has very limited meaning. Since 2009, HEC Paris and Dow Jones have joined forces to publish regular rankings of PE Firms based on their historic performance and expected future competitiveness respectively.

“The ranking draws on a comprehensive set of data on PE fund performance provided by Dow Jones or directly by fund managers and uses a novel and unique methodology to calculate the aggregate performance of a PE firm based on difference performance measures for all the funds managed by this firm. The method is able to aggregate performance across vintage years and considers relative and absolute returns. In total, we analyzed performance data from 427 PE firms and the 950 funds they raised between 1998 and 2007 with an aggregate equity volume of $1300bn.” says Professor Gottschalg.

Find here the presse release

Read the executive summary

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