An economic case for transparency in private equity, data science, interest alignment and organic finance

by Ashby Monk, Sheridan Porter, Rajiv Sharma

The complete report, which was published in August 2021, is available at

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3931906

Excerpt:

The private equity asset class has grown rapidly since 2008, attracting institutional investors in need of higher returns than those expected from public markets. But while most investors would say they have been rewarded with good performance, this success is hard to objectively demonstrate due to intransitive metrics and unmeasured risks. It is our belief that there is a pressing need to substantiate the economic case for private equity. In this article, we describe a new transparency framework, which we situate in our research agenda on ‘organic finance’. The framework uses data science technology to operationalize private equity data an