PT  - JOURNAL ARTICLE
AU  - Josh Lerner
AU  - Mark Baker
TI  - Practical Applications of An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity
AID  - 10.3905/pa.6.3.305
DP  - 2019 Jan 31
TA  - Practical Applications
PG  - 1--4
VI  - 6
IP  - 3
4099  - https://pm-research.com/content/6/3/1.11.short
4100  - https://pm-research.com/content/6/3/1.11.full
AB  - Is private equity investment really riskier in emerging markets than in developed markets? In An Empirical Analysis of Investment Return Dispersion in Emerging Market Private Equity, published in the Fall 2017 issue of The Journal of Private Equity, Josh Lerner (Harvard Business School) and Mark Baker (then an analyst at Bella Research) tackle this question by looking at the dispersion of returns at the level of individual transactions. Through analysis of deal-level data, they show that internal rates of return are not significantly more dispersed in emerging markets than they are in developed markets, and-interestingly-that ratios of total value to paid-in capital are actually more widely dispersed in developed markets.TOPICS: Private equity, emerging, performance measurement, statistical methods