This dissertation is concerned with valuation smoothing and investor preferences for smoothed returns. I estimate the marginal value of cash to private equity funds and compare it to public firms. The equity of small capitalization and value firms is smoother than other public firms, consistent with the value premium, and displays a similar present value relationship to buyout funds. Better performing private equity partnerships tend to smooth more and have a higher likelihood of raising follow-on funds. These results suggest that investors like it smooth, which hints at a potential role for smoothed portfolios of publicly traded securities that feature delays in marking to market.