research - July 3, 2023
We assemble a proprietary dataset of 395 private equity (PE) fund prospectuses to analyze fund performance and fundraising success. We analyze both quantitative and qualitative information contained in these documents using econometric methods and machine learning techniques. PE fund performance is unrelated to quantitative information, such as prior performance, and measures of document readability. Measures of fundraising success, in contrast, are correlated to most fund characteristics but are not related to future performance.