Research

Tail End Research Report 20212021 Research: Re-examining PE Fund Performance & Secondary Market Analysis

Upwelling has released an updated research report re-examining private equity performance of "Tail-End Funds" (funds operating beyond 10 years). Some of the key highlights and affirmations of the previous study include the following:

  • Tail-end funds, on average, do not appreciate regardless of strategy
  • $140 million – the opportunity cost of holding $1 billion in tail-end funds
  • $370 million – the opportunity cost of holding $1 billion in tail-end funds, if top quartile performance can be achieved upon reinvestment

Interestingly, the secondary market has grown to provide multiple tools that both GPs and LPs can use to maximize value in their tail-end funds and positions.

To read the full report, click on the following link: Tail End Research Report 2021 - Upwelling Capital Group

Graph - yrs 1-20 returns - uw 2021

2019 Research on Tail-End Funds

Upwelling released an in-depth research report which examines the performance of private equity funds operating beyond 10 years (“Tail-End Funds”). The report details key findings, such as:

• On average, Tail-End Funds lose value, regardless of quartile ranking

• The opportunity cost of holding Tail-End Funds is enormous

• Stellar returns aren’t required to compensate for selling at a double-digit discount

The report aims to provide tools to private equity investors to better evaluate the decision of whether to hold or sell non-core investments.

To read the full report, click on the following link: Tail End Research Report – 2019 – Upwelling Capital Group

 

Graph - yrs 1-20 returns - uw