---
_id: '5185'
abstract:
- lang: eng
  text: 'We offer the first empirical analysis connecting the timing of general partner
    (GP) compensation to private equity fund performance. Using detailed information
    on limited partnership agreements between private equity limited and general partners,
    we find that "GP-friendly" contracts - agreements that pay general partners on
    a deal-by-deal basis instead of withholding carried interest until a benchmark
    return has been earned - are associated with higher returns, both gross and net
    of fees. This is robust to measures of performance persistence, time period effects,
    and other contract terms, and is related to exit-timing incentives. Timing practices
    balance GP incentives against limited partner downside protection. '
author:
- first_name: Niklas
  full_name: Hüther, Niklas
  last_name: Hüther
- first_name: David
  full_name: Robinson, David
  last_name: Robinson
- first_name: Sönke
  full_name: Sievers, Sönke
  last_name: Sievers
- first_name: Thomas
  full_name: Hartmann-Wendels, Thomas
  last_name: Hartmann-Wendels
citation:
  ama: 'Hüther N, Robinson D, Sievers S, Hartmann-Wendels T. Paying for Performance
    in Private Equity: Evidence from VC Partnerships. <i>SSRN Electronic Journal</i>.
    2017. doi:<a href="https://doi.org/10.2139/ssrn.3087320">10.2139/ssrn.3087320</a>'
  apa: 'Hüther, N., Robinson, D., Sievers, S., &#38; Hartmann-Wendels, T. (2017).
    Paying for Performance in Private Equity: Evidence from VC Partnerships. <i>SSRN
    Electronic Journal</i>. <a href="https://doi.org/10.2139/ssrn.3087320">https://doi.org/10.2139/ssrn.3087320</a>'
  bibtex: '@article{Hüther_Robinson_Sievers_Hartmann-Wendels_2017, title={Paying for
    Performance in Private Equity: Evidence from VC Partnerships}, DOI={<a href="https://doi.org/10.2139/ssrn.3087320">10.2139/ssrn.3087320</a>},
    journal={SSRN Electronic Journal}, author={Hüther, Niklas and Robinson, David
    and Sievers, Sönke and Hartmann-Wendels, Thomas}, year={2017} }'
  chicago: 'Hüther, Niklas, David Robinson, Sönke Sievers, and Thomas Hartmann-Wendels.
    “Paying for Performance in Private Equity: Evidence from VC Partnerships.” <i>SSRN
    Electronic Journal</i>, 2017. <a href="https://doi.org/10.2139/ssrn.3087320">https://doi.org/10.2139/ssrn.3087320</a>.'
  ieee: 'N. Hüther, D. Robinson, S. Sievers, and T. Hartmann-Wendels, “Paying for
    Performance in Private Equity: Evidence from VC Partnerships,” <i>SSRN Electronic
    Journal</i>, 2017.'
  mla: 'Hüther, Niklas, et al. “Paying for Performance in Private Equity: Evidence
    from VC Partnerships.” <i>SSRN Electronic Journal</i>, 2017, doi:<a href="https://doi.org/10.2139/ssrn.3087320">10.2139/ssrn.3087320</a>.'
  short: N. Hüther, D. Robinson, S. Sievers, T. Hartmann-Wendels, SSRN Electronic
    Journal (2017).
date_created: 2018-10-31T10:48:46Z
date_updated: 2022-01-06T07:01:41Z
department:
- _id: '275'
doi: 10.2139/ssrn.3087320
jel:
- G10
- G23
- G24
keyword:
- venture capital
- compensation
- private equity
- VC partnership
- pay-performance relation
language:
- iso: eng
publication: SSRN Electronic Journal
status: public
title: 'Paying for Performance in Private Equity: Evidence from VC Partnerships'
type: journal_article
user_id: '64756'
year: '2017'
...