Private Equity

Elite private equity investors receive preferential treatment

New research weakens the case for backing firms based on past performance, says MIT professor Antoinette Schoar

Elite private equity investors receive preferential treatment

In private equity, not all investors are created equal.

At a time many private equity funds are oversubscribed, an investor assembling a portfolio from scratch may have a harder time gaining access to a big-name fund than a pension fund with deep pockets and longstanding industry relationships. If a newcomer gains access to the fund, there is no guarantee it will do so on the same terms.

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