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Buyout Fund Size vs. Performance

Canterbury analyzes the impact of fund size on performance by using Preqin’s database for a sample of 907 buyout funds raised between 1995 and 2015 in the U.S. and Europe.

Introduction

One of the most consistent questions related to private equity buyout funds is about the impact of fund size on performance. Do smaller funds outperform due to lower acquisition multiples, the ability to capitalize on operational inefficiencies, and inexperienced management teams? Or do larger funds outperform, as target companies have more predictable cash flows, stronger market positions, and are more likely to survive a downturn? The following analysis seeks to answer this overarching question.

 

Read Canterbury's white paper: Buyout Fund Size vs. Performance