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 "@type": "DefinedTerm",
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 "identifier": "kaal:entity:private-equity",
 "name": "Private equity",
 "termCode": "private-equity",
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 "author": {
  "@type": "Person",
  "name": "Wulf A. Kaal",
  "identifier": "https://orcid.org/0000-0003-0757-275X"
 },
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/1428387-005",
   "identifier": "kaal:claim:1428387-005",
   "text": "When hedge funds adopt private equity strategies by adding private companies to their portfolios, they exacerbate valuation problems, and the convergence of the two asset classes makes it more difficult to accurately assess the value of each.",
   "abstract": "If hedge funds engage in private equity strategies, i.e. adding private companies to their portfolio, they may exacerbate the valuation issues. The convergence of hedge funds and private-equity funds makes it more difficult to accurately assess the value of each asset class.",
   "citation": "Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387",
   "datePublished": "2009",
   "claim_type": "mechanism",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "where hedge funds hold private, non-traded portfolio companies"
   ],
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2714974-016",
   "identifier": "kaal:claim:2714974-016",
   "text": "The long term capital gains treatment of carried interest matters more to private equity, venture capital, and real estate fund advisers than to hedge fund advisers, because those funds hold portfolio company stock longer on average.",
   "abstract": "The LTCG tax benefits are crucial to the returns of private equity, venture capital, and real estate investment funds advisers whose funds hold portfolio company stock longer on average than do hedge funds.",
   "citation": "Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974",
   "datePublished": "2016",
   "claim_type": "mechanism",
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2714974-038",
   "identifier": "kaal:claim:2714974-038",
   "text": "Hedge fund and private equity IPOs indicate that the historic contours of the industry as privately held, unregistered, and exempt funds are slowly changing as the industry becomes a more mainstream part of finance.",
   "abstract": "IPOs of hedge and private equity funds suggest that the historic contours of the hedge fund industry as privately-held and managed investment funds, unregistered and exempt from federal securities regulation are slowly changing as the industry becomes a more mainstream part of finance.",
   "citation": "Kaal and Oesterle, The History of Hedge Fund Regulation in the United States (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714974",
   "datePublished": "2016",
   "claim_type": "predictive",
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   "scope_conditions": [
    "based on listings since the mid 2000s, which remain rare among hedge funds"
   ],
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  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2732915-014",
   "identifier": "kaal:claim:2732915-014",
   "text": "Approximately 155 investment advisers managing over $2 billion in private equity fund assets may represent roughly 75 percent of the U.S. private equity fund industry, so a small number of filers covers most industry assets.",
   "abstract": "Similarly, the approximately 155 investment advisers managing over $2 billion in private equity fund assets may represent roughly 75% of the U.S. private equity fund industry.",
   "citation": "Wulf A. Kaal, The Private Fund Industry Five Years after the Dodd-Frank Act – A Survey Study (2016). SSRN: https://ssrn.com/abstract=2732915",
   "datePublished": "2016",
   "claim_type": "empirical",
   "confidence": "evidenced",
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   "scope_conditions": [
    "SEC and Preqin estimates cited in the Form PF release"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2732915-015",
   "identifier": "kaal:claim:2732915-015",
   "text": "Form PF data from the SEC Risk and Examinations Office for the fourth quarter of 2014 show net asset value of about $3,399 billion for hedge funds, $2,672 billion for Qualifying Hedge Funds, and $1,744 billion for private equity.",
   "abstract": "Form PF data provided by the SEC's Risk and Examinations Office for the fourth quarter of 2104 show that the net asset value is around $3,399 billion for hedge funds, $2,672 billion for Qualifying Hedge Funds and $1,744 billion for Private Equity.",
   "citation": "Wulf A. Kaal, The Private Fund Industry Five Years after the Dodd-Frank Act – A Survey Study (2016). SSRN: https://ssrn.com/abstract=2732915",
   "datePublished": "2016",
   "claim_type": "empirical",
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   "is_failure_mode": false,
   "scope_conditions": [
    "fourth calendar quarter 2014 Private Funds Statistics"
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2959730-005",
   "identifier": "kaal:claim:2959730-005",
   "text": "The historical private fund management fee of 2% has shifted in recent years to roughly 1.0% for new managers and 1.5 to 1.8% for established managers with an adequate track record.",
   "abstract": "However, the historical fee of 2% of commitments through the reinvestment period, then 2% on the cost basis for the investments/value of fund has shifted in recent years closer to 1.0% for new managers and 1.5-1.8% for established managers with an adequate track record.",
   "citation": "Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730",
   "datePublished": "2017",
   "claim_type": "empirical",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "private equity and hedge fund managers",
    "established managers require an adequate track record"
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  },
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2959730-014",
   "identifier": "kaal:claim:2959730-014",
   "text": "Pressure on the incentive fee side operates through blackened carried interest, under which a manager cannot collect carry until all limited partners have had their capital returned within the lifetime of the private equity model.",
   "abstract": "Some industry observers are now talking about a movement towards blackened carried interest, meaning a private investment fund manager cannot collect carry until all limited partner investors have had their capital returned within the lifetime of the private equity model.",
   "citation": "Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730",
   "datePublished": "2017",
   "claim_type": "mechanism",
   "confidence": "asserted",
   "is_failure_mode": false,
   "scope_conditions": [
    "private equity funds and, similarly, hedge funds",
    "carry measured over the lifetime of the fund model"
   ],
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2959730-024",
   "identifier": "kaal:claim:2959730-024",
   "text": "A blockchain program for private equity administration allows all involved parties in an equity deal to look at a single compiled version of the transaction and all other data relating to the deal, replacing the reconciliation of multiple document copies.",
   "abstract": "the blockchain program announced by Northern Trust and IBM allows all involved parties in an equity deal to look at a single compiled version of the transaction and all other data relating to the deal.",
   "citation": "Wulf A. Kaal, Blockchain Applications and Fee Structure Developments in Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2959730",
   "datePublished": "2017",
   "claim_type": "design",
   "confidence": "argued",
   "is_failure_mode": false,
   "scope_conditions": [
    "private equity transactions administered on a shared ledger"
   ],
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/2998033-020",
   "identifier": "kaal:claim:2998033-020",
   "text": "Blockchain removes the reconciliation problem in private equity administration by letting every party to a deal view a single compiled version of the transaction and its associated data, instead of reconciling multiple copies of deal documents.",
   "abstract": "the blockchain program announced by Northern Trust and IBM allows all involved parties in an equity deal to look at a single compiled version of the transaction and all other data relating to the deal.",
   "citation": "Wulf A. Kaal, Blockchain Innovation for Private Investment Funds (2017). SSRN: https://ssrn.com/abstract=2998033",
   "datePublished": "2017",
   "claim_type": "mechanism",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "illustrated by the February 2017 Northern Trust and IBM private equity administration partnership"
   ],
   "source_pdf_sha256": "aafb1be3c25cd33da477d759df9ca2f856f0a8fe133d6396da2e75d0af573dbd",
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   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3002908-037",
   "identifier": "kaal:claim:3002908-037",
   "text": "The Northern Trust and IBM blockchain program removes the need for parties to reconcile multiple copies of deal documents by letting every party to a private equity deal look at a single compiled version of the transaction.",
   "abstract": "which requires parties to reconcile multiples copies of the documents that form the deals to understand the greater picture, the blockchain program announced by Northern Trust and IBM allows all involved parties in an equity deal to look at a single compiled version",
   "citation": "Wulf A. Kaal, Marco Dell'Erba, Blockchain Innovation in Private Investment Funds - A Comparative Analysis of the United States and (2017). SSRN: https://ssrn.com/abstract=3002908",
   "datePublished": "2017",
   "claim_type": "mechanism",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "private equity deal administration, partnership announced February 2017"
   ],
   "source_pdf_sha256": "06a7b61e75f905ee07e422e875d83a65c5033a248a6e05a213523b034e5db534",
   "status": "current"
  },
  {
   "@type": "Claim",
   "@id": "https://wulfkaal.github.io/claims/3409548-019",
   "identifier": "kaal:claim:3409548-019",
   "text": "The Northern Trust and IBM blockchain removes a specific inefficiency in private equity deal practice by letting all involved parties in a deal look at a single compiled version of the transaction and all data relating to it, rather than reconciling multiple copies of the deal documents.",
   "abstract": "the blockchain program announced by Northern Trust and IBM allows all involved parties in an equity deal to look at a single compiled version of the transaction and all other data relating to the deal.",
   "citation": "Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548",
   "datePublished": "2019",
   "claim_type": "mechanism",
   "confidence": "evidenced",
   "is_failure_mode": false,
   "scope_conditions": [
    "private equity deal administration",
    "Northern Trust and IBM partnership from February 2017"
   ],
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 "description": "11 claims in the published works of Wulf A. Kaal carry the concept tag 'private-equity'. Derived node: a roster, not an adjudicated definition."
}