Abstract
Institutional and individual investors evaluate private market opportunities systematically differently, even facing identical choices. In a survey experiment, 593 institutional and 445 individual investors assess venture capital fund profiles with independently randomized GP characteristics. Institutions heavily weight past fund performance, consistent with risk-averse investor demand calibrated to VC markets. Individuals largely ignore performance, favoring educational credentials instead. A follow-up experiment identifies two independent mechanisms: individuals lack awareness that VC performance persists and discount quality signals for funds they perceive as inaccessible. Performance-based selection alone reduces individuals' expected returns by approximately 7%, accounting for 20% of the return gap with professionals.