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Excerpt: We also examine whether fund performance is linked to the aggregate amount of capital flowing into private equity or to the size of a fund. We find that both absolute performance and performance relative to public markets are negatively related to aggregate capital commitments for both buyout and VC funds. …..
We find no significant relation between performance and fund size for buyout funds. For VC funds, we find that funds in the bottom quartile of fund size underperform. Controlling for vintage year, top size quartile funds have the best performance although it does not differ significantly from funds in the 2nd and 3rd size quartiles