What Drives Private Equity Fund Performance in Emerging Markets
(2025) NEKN02 20251Department of Economics
- Abstract
- Based on a sample of 591 emerging market private equity funds from the Preqin database, this
paper investigates the relationship between fund structural characteristics and relative
performance. Benchmark-adjusted internal rate of return (BAIRR) is used to measure
performance, and a cross-sectional regression model is constructed with fund size, GP
experience, investment strategy, and investment region as explanatory variables. The results
show that fund size and GP experience are significantly negatively correlated with relative
performance, supporting diminishing returns to scale and path dependence hypotheses. Growth
strategy funds outperform VCs and Buyouts. There are also substantial differences between
regions, with... (More) - Based on a sample of 591 emerging market private equity funds from the Preqin database, this
paper investigates the relationship between fund structural characteristics and relative
performance. Benchmark-adjusted internal rate of return (BAIRR) is used to measure
performance, and a cross-sectional regression model is constructed with fund size, GP
experience, investment strategy, and investment region as explanatory variables. The results
show that fund size and GP experience are significantly negatively correlated with relative
performance, supporting diminishing returns to scale and path dependence hypotheses. Growth
strategy funds outperform VCs and Buyouts. There are also substantial differences between
regions, with Africa outperforming Asia, and Latin America being the weakest. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9193938
- author
- Zhang, Naidan LU
- supervisor
- organization
- course
- NEKN02 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Private Equity Fund, Emerging Markets, Fund Performance, Investment Strategy
- language
- English
- id
- 9193938
- date added to LUP
- 2025-09-12 10:47:11
- date last changed
- 2025-09-12 10:47:11
@misc{9193938, abstract = {{Based on a sample of 591 emerging market private equity funds from the Preqin database, this paper investigates the relationship between fund structural characteristics and relative performance. Benchmark-adjusted internal rate of return (BAIRR) is used to measure performance, and a cross-sectional regression model is constructed with fund size, GP experience, investment strategy, and investment region as explanatory variables. The results show that fund size and GP experience are significantly negatively correlated with relative performance, supporting diminishing returns to scale and path dependence hypotheses. Growth strategy funds outperform VCs and Buyouts. There are also substantial differences between regions, with Africa outperforming Asia, and Latin America being the weakest.}}, author = {{Zhang, Naidan}}, language = {{eng}}, note = {{Student Paper}}, title = {{What Drives Private Equity Fund Performance in Emerging Markets}}, year = {{2025}}, }