01143nam a2200109   4500008004100000022001400041245022600055260003700281300001800318440005500336500064200391190323b        xxu||||| |||| 00| 0 eng d  a0304-405X  aFinancial intermediation in private equity: How well do funds of funds perform? / by Robert S. Harris, Tim Jenkinson, Steven N. Kaplan & Ruediger StuckecRobert S. Harris, Tim Jenkinson, Steven N. Kaplan & Ruediger Stucke  aAmsterdambElseviercAugust 2018  aPages 287-305  aJournal of Financial Economicsv129 (2)x0304-405X  aAbstract
This paper focuses on funds of funds (FOFs) as a form of financial intermediation in private equity (both buyout and venture capital). After accounting for fees, FOFs provide returns equal to or above public market indices for both buyout and venture capital. While FOFs focusing on buyouts outperform public markets, they underperform direct fund investment strategies in buyout. In contrast, the average performance of FOFs in venture capital is on a par with results from direct venture fund investing. This suggests that FOFs in venture capital (but not in buyouts) are able to identify and access superior performing funds.