Private Equity funds and their performance in the post-crisis period
|Autor:||Bc. Štěpán Koníř,|
|Rok:||2019 - letní|
|Vedoucí:|| prof. PhDr. Ladislav Krištoufek Ph.D.
|Typ práce:|| Bakalářská
|Abstrakt:||The work covers the topic of private equity funds performance and attempt to identify the
impact of macroeconomic conditions on the entire industry. The recent central banks’ actions
put a question about the impact of changes in interest rates on the private equity funds
performance. With the sample of 100 observations provided by Cambridge Associates, we
identified the significant negative effect of prevailing low interest rates on the growth of private
equity funds performance. We further attempt to answer the question, whether private equity
funds operating in post-crisis years has on average higher growth rate, however, we could not
provide the answer as we failed to reject the null, neutral effect hypothesis. Additionally, with
a sample of 3092 observations provided by Bloomberg, we found that the effect of cheap debt
has increased on average in the postcrisis period, predicting that the private equity performance
can suffer once the interest rates rises enough.