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Private Equity Continues To Provide Superior Returns Over The Long-Term

Hedge Fund SurveyNew York (HedgeCo.Net) – Private equity returns significantly outperformed the S&P 500 over the long term, according to the most recent Performance Update from the Private Equity Growth Capital Council (PEGCC). As of December 31, 2013, returns from private equity (net of fees) beat the S&P 500 (including dividends) for the 10-year horizon by 6.5 percentage points.

“Private equity posted strong returns in the fourth quarter of 2013, marking another consecutive quarter in which PE performance outpaced public equities over the 10-year time horizon,” said PEGCC President and CEO Steve Judge. “This is yet another reminder of why pension funds, university endowments, and charitable foundations continue to rely on private equity as a source of superior investment returns.”

Even as public equity markets have rebounded from record declines in 2008-2009, private equity performance continues to outpace equities over long-term horizons, according to the latest report. The PEGCC’s measure for private equity fund performance is based on the median of publicly available benchmarks. This measure indicates private equity funds returned an annualized 13.9, 15.9, 15, and 20.9 percent during 10-year, 5-year, 3-year and 1-year periods, respectively.

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