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The Finnish Securities Market Promotion Foundation supports research and publishing activities related to securities saving and the development of the securities markets. 

The foundation’s board has awarded School of Business finance students Juho Tuuliainen and Ville Virkkunen for their excellent jointly written master’s thesis. Each student will receive a personal grant of 3,500 euros. The title of the master’s thesis is 'Private Debt Performance Persistence – Evidence from a Cross-Database Analysis'.

In their study, Tuuliainen and Virkkunen examine performance persistence in private debt funds, a topic that has received very little academic attention to date. Private debt has grown into an asset class worth over $1.5 trillion, yet systematic research on performance persistence in this sector remains scarce compared to other areas of alternative investments. Tuuliainen and Virkkunen address this gap by utilizing an exceptionally extensive dataset drawn from two commercial databases, Preqin and PitchBook. A similar multi-database approach has not previously been applied in private debt research.

‘Our interest in the topic was sparked by Professor Juha Joenväärä’s Alternative Investments course. We wanted to understand how investment decisions regarding private debt are made in practice, so we visited debt funds, limited partners, and banks before beginning our thesis. We noticed that while interest in the asset class has grown significantly in practice, the persistence of returns related to private debt was a topic that had received little academic attention. Our meetings reinforced our decision to tackle this very issue,’ say Tuuliainen and Virkkunen. 

The process also proved rewarding in an unexpected way: many of the interviewees later reached out on their own initiative to continue the discussion about the study’s findings. The award from the Finnish Foundation for Advancement of Securities Markets is also a sign that our work resonates with both the academic community and practical investors.

The master’s thesis was supervised by Professor of Finance Juha Joenväärä. In addition, Professor of Practice Antti Suhonen shared his academic and practical expertise with the students. 

Juho Tuuliainen and Ville Virkkunen warmly thank the Finnish Foundation for Advancement of Securities Markets for the recognition they have received.

Congratulations, Juho and Ville!