Vincent Maurin
Institution
HEC Paris
PhD Year
2016
maurin@hec.fr
FTG Membership
Member
Website
https://sites.google.com/site/vincentmmaurin/home
Featured Work
Feb 5, 2019
A Theory of Liquidity in Private Equity
We propose a model of Private Equity (PE) investment that can rationalize several empirical findings about fundraising and returns. General partners (GPs) possess superior investment skills and raise capital from Limited Partners (LPs) to finance illiquid projects within funds. The optimal fund contract incentivizes GPs to maximize the expected payoff of fund investments by giving them a profit share in the fund, while compensating LPs...
