Quants clone private equity: pale imitation or real deal?

Theory says replication can work, but investors are reluctant to give up private equity’s smoothed returns

Ten years ago Bain Capital set out to analyse the private equity sector’s so-called secret sauce. The $100 billion investor put to work a team of analysts to gather data on deals by the top 25 private equity shops, itself included, hunting for patterns in how they made money. The analysts got a surprise.

The study, which looked at buyout deals across a period of 30 years, showed the “vast majority” of the profits in the industry had been generated by the cheapest deals, says Daniel Rasmussen

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here