The impact of the economic crisis on listed private equity

Item Type Journal paper
Abstract Volatility in international capital markets and the increasing uncertainty of investors during the global economic crisis called for new perspectives with regard to asset classes and their diversi-fication potential. Listed private equity (LPE) could serve the purpose of diversification and stabilization based on its dual nature of publicly traded stock and of a closed-end fund vehicle. This paper aims to contribute to the knowledge about LPE risk and return characteristics and performance in particular during crisis time by examining the net asset value (NAV) and price return of global LPE vehicles over 13 years (2000-2013). Consequently, the quarterly stock prices and net asset values per share are evaluated based on 13 explanatory factors. The sample covers different LPE styles and investment categories and was selected based on the member-ship in the LPX2 universe as well as based on liquidity and reliability criteria (LPX, 2014). Therefore, the drawn sample is representative for the global private equity community. This paper will focus on three questions. Firstly, how does LPE behave relatively to other tradi-tional asset classes, e.g. how do the correlations look like? Secondly, what are the drivers of performance of LPE? Thirdly, how did LPE behave during the crisis years 2007-09 and how did the factors driving the performance change? To account for the comparability of the empirical results the effects of the crisis mentioned in question 3 are addressed directly in the last part of each section.
Authors Grüner, Andreas & Hollenwaeger, Simone
Journal or Publication Title Journal of Business and Economics in Times of Crisis
Language English
Keywords volatility, international capital markets, listed private equity, diversification, risk/return-characteristics, LPX universe, net asset value, asset classes
Subjects business studies
HSG Classification contribution to scientific community
HSG Profile Area SoM - Responsible Corporate Competitiveness (RoCC)
Refereed Yes
Date 31 March 2015
Publisher Lupcon Center für Business Research (LCBR)
Place of Publication Ebermannstadt
Volume 2
Number 1
Page Range 1-32
Number of Pages 32
ISSN 2190-7919
Depositing User Prof. Dr. Andreas Grüner
Date Deposited 25 Jul 2015 21:11
Last Modified 20 Jul 2022 17:25
URI: https://www.alexandria.unisg.ch/publications/242726

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Grüner, Andreas & Hollenwaeger, Simone (2015) The impact of the economic crisis on listed private equity. Journal of Business and Economics in Times of Crisis, 2 (1). 1-32. ISSN 2190-7919

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https://www.alexandria.unisg.ch/id/eprint/242726
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