The paper "Size, returns, and value: Do private equity firms allocate capital according to manager skill?" has been accepted at the prestigious Journal of Finance. In this paper, our chair holder Reiner Braun, together with his co-authors Nils Dorau (also TUM), Tim Jenkinson (Oxford), and Daniel Urban (Rotterdam), shows that private equity GPs do indeed perform consistently when performance is assessed using NPV rather than IRR. The study also shows that PE organizations entrust more capital to employees who have delivered the best performance in the past.