Private Equity Performance: More appearance than substance?
We cordially invite you to join two top researchers discuss private equity returns and share their conflicting views on this matter. The event is live-streamed by the Danish Finance Society/CFA Society Denmark to a broader audience, and you now have the opportunity to participate is this exciting webinar.
Hosted by Michael Albrechtslund, CEO of the Danish Finance Society/CFA Society Denmark, moderated by Christian Kvorning, CFA, CAIA, Senior Partner at Danske Private Equity, and featuring two presentations and a panel discussion with Professor Steven Neil Kaplan from University of Chicago Booth School of Business and Ludovic Phalippou, Professor of Financial Economics at Saïd Business School, University of Oxford.
Watch as they discuss pros and cons of private equity investments
The outset – While global investors have increased their allocation to alternative investments substantially over the recent years, there have been opponents to this trend who claim that private equity do not add value to a portfolio, especially on a risk-adjusted basis and net of fees. To get a better understanding on the pros and cons of private equity investments and whether the returns make up for the complexity and illiquidity, we have invited Professor Steven Kaplan from University of Chicago Booth School of Business and author of the paper “Have Private Equity Returns Really Declined?” to give his view on the topic. Prof. Kaplan contributed substantially to the Private Equity community, not least by the development of the KS PME (Kaplan Schoar Public Market Equivalent), a widespread performance measure of private investments against a public benchmark.
In addition, we have also invited Ludovic Phalippou, Professor of Financial Economics at Saïd Business School, University of Oxford, to discuss and present different views on the value-added by Private Equity. Mr. Phalippou has argued, that investors have paid mass amounts of fees to private equity managers over decades, while private equity returns have matched those an investor would have gotten by investing in publicly traded stocks. He found in his research paper, “An Inconvenient Fact: Private Equity Returns & The Billionaire Factory”, that the apparent outperformance all comes, from comparing to wrong benchmarks and misleading measurement, not private equity returns themselves.
If you want to send your question(s) in advance, your are more than welcome. Please send to firstname.lastname@example.org
Host – Michael Albrechtslund, CEO of the Danish Finance Society/CFA Society Denmark
|3:00pm||An Inconvenient Fact: Private Equity Returns & The Billionaire Factory – + Q&A
Ludovic Phalippou, Professor of Financial Economics at Saïd Business School, University of Oxford
|3:25pm||Have Private Equity Returns Really Declined? + Q&A
Professor Steven Neil Kaplan, University of Chicago Booth School of Business
|3:50pm||Panel debate, including Q&A from the audience
Moderator – Christian Kvorning, CFA, CAIA, Senior Partner at Danske Private Equity
CFA Society member: Free
Basis-member: DKK 300.00
Non-member: DKK 750.00 / EUR 100
CFA CE Credit Hours
If you are a CFA Institute member, you are eligible to record 1.25 CE credit hours for your participation in this meeting
Presenters & Panelist
Professor Steven Neil Kaplan
University of Chicago Booth School of Business
Steven Neil Kaplan conducts research on issues in private equity, venture capital, entrepreneurial finance, corporate governance and corporate finance. He has published papers in a number of academic and business journals. Kaplan is a research associate at the National Bureau of Economic Research and an associate editor of the Journal of Financial Economics.
He is the co-creator of the Kaplan-Schoar PME (Public Market Equivalent) private equity benchmarking approach. A Fortune Magazine article referred to him as “probably the foremost private equity scholar in the galaxy.”
Kaplan teaches advanced MBA and executive courses in entrepreneurial finance and private equity, corporate finance, corporate governance, and wealth management. BusinessWeek named him one of the top 12 business school teachers in the country.
Professor Kaplan co-founded the entrepreneurship program at Booth. With his students, he helped start Booth’s business plan competition, the New Venture Challenge (NVC), which has included over 800 companies that have raised almost $1 billion and created over $8 billion in value including GrubHub, Braintree/Venmo and Simple Mills.
Kaplan serves on the board of Morningstar and several fund and company advisory boards. He has been a member of the faculty since 1988.
He received his AB, summa cum laude, in Applied Mathematics and Economics from Harvard College and earned a PhD in Business Economics from Harvard University.
Professor of Financial Economics at Saïd Business School, University of Oxford
Ludovic Phalippou is currently the Head of the FAME Group at Saïd Business School and specialises in private equity and asset management.
Ludovic is the author of the bestseller ‘Private Equity Laid Bare’, and professor of Financial Economics at Saïd Business School, University of Oxford. He specialises in private market investments with a focus on fee tracking, interest alignment, and return benchmarking.
Named as one of “The 40 Most Outstanding Business School Profs Under 40 in the World” in 2014, and as one of the 20 most influential individuals in private equity in Europe in 2016, Ludovic has strong links with senior practitioners in the industry, routinely speaks at practitioner conferences, and appears in the media internationally. Ludovic’s research papers have been widely cited in academia, in the press, and in regulatory circles.
Ludovic’s paper ‘How alternative are private markets?’ is one of three 2018 recipients of the Jack Treynor Prize, sponsored by the Q-Group. The Treynor Prize recognises superior academic working papers with potential applications in the fields of investment management and financial markets.
Ludovic achieved a degree in Economics from Toulouse School of Economics; a Master in Economics and a Master in Mathematical Finance both from the University of Southern California; and a PhD in Finance from INSEAD.
Prior to the event we strongly suggest that you study both papers, which can be found here:
Steven Kaplan, Have Private Equity Returns Really Declined?
Ludovic Phalippou: An Inconvenient Fact: Private Equity Returns & The Billionaire Factory
Link to the webinar
The webinar is held on the Zoom platform and approx. 1 hour before start, you will receive an email with a link to attend.
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