Where would you like to see research carried out?
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| “Most of the academic research tends to be at the fund level – largely because that’s where datasets are most available. Yet we are now starting to see more data emerge on the underlying portfolio companies, at the asset level. There is a big research opportunity to study the dynamics, returns and risks of pools of similar assets level liberated from the fund wrapper. There could also be more focus on smaller institutional investors and at the family office level as more data becomes available here – to date, most academic research has necessarily focused on large LPs and GPs. “Finally, it would be great to see research that helps us understand how democratisation of PE could work best. There are a lot of challenges, not least how funds can best create some degree of liquidity for investors, and so it would be interesting to see a study on how interval, tender offer and evergreen funds can overcome these challenges.” Richard Carson |
“One important area we need to understand better is the intersection of PE investing in areas with non-pecuniary outcomes or very long-term returns, such as healthcare, the climate and, perhaps, even generative AI. PE is suited to taking big risks because it draws on more patient pools of capital that are not beholden to short-term accounting reporting. But we need to understand better the externalities their involvement may be creating. “One issue that has long concerned me is what the implications are for the efficiency of the PE market if LP investors are not making optimal capital allocation choices between funds. Academic research could help us understand how society could take advantage of what PE does well while also making sure that we are not creating loopholes to avoid regulatory frameworks.” Antoinette Schoar |
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