Did the Dodd-Frank Act Impact Private Fund Performance – Evidence from 2010 – 2015
Wulf A. Kaal, Barbara Luppi, Sandra Paterlini · 2016
Title IV of the Dodd-Frank Act of 2010 introduced the most significant regulatory change in the history of the private fund industry. Attempts to rescind Title IV via the Investment Advisers Modernization Act of 2016 illustrate the highly politically sensitive nature of Dodd-Frank Act registration and disclosure obligations for the private fund industry. To analyze the effect of Title IV on the private fund industry, we use five years of private fund performance data with over 7,000 reporting private funds in a regression discontinuity design. Using multiple hand-selected control groups and several iterations of broad and narrow RD designs and robustness checks, our findings are consistent and do not support the private fund industry’s claims that increased supervision and disclosure mandated in the Dodd-Frank Act have a negative effect on private fund earnings.
Cite: Wulf A. Kaal, Barbara Luppi, Sandra Paterlini, Did the Dodd-Frank Act Impact Private Fund Performance – Evidence from 2010 – 2015 (2016). SSRN: https://ssrn.com/abstract=2816408. https://doi.org/10.2139/SSRN.2629347
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