The X-SPEEDS Project is using data science to bring clarity to private equity. It’s an active collaboration among researchers from the Global Projects Center (GPC) at Stanford University, Real Capital Innovation (RCI), and 8VC. The sole objective of X-SPEEDS is to openly dissect the private equity industry and uncover what’s truly driving risk, performance, and behavior within it. Doing so is the first step toward making private equity fairer and more efficient for all.
CHIEF FINDINGS PE funds tend to call only about ⅓ of committed capital during the first 2 years of a fund’s life, which creates a need for sophisticated liquidity planning There is substantial variability in the pace at which PE funds call capital Call pacing appears to strongly vary by fund vintage, with moderate cyclicality […]
ONE-AND-A-HALF FALSEHOODS Many businesses in ‘traditional’ industries are now using data science to rethink how they operate. That’s because data-science tools can empower people at all levels of an organization to make decisions that more closely align with empirical facts, rather than basing choices primarily on past practice, intuition, or best guesses. Put differently: data […]
COMBATTING OPACITY The private equity (PE) industry has an opacity problem. Regulations, incentive structures, norms, and market dynamics in PE all tend to discourage transparency. This in turn limits visibility on how performance varies across the industry, along with operating factors that drive performance. Liquidity management is one such factor for which visibility is especially […]
Get the freshest research directly in your inbox.