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 - Final