Private Equity Investments Best S&P 500 Over Long-Term

report3New York (HedgeCo.Net) – According to the most recent quarterly Performance Update Report from the Private Equity Growth Capital Council (PEGCC), over a 10-year horizon, returns from private equity funds (net of fees) outperformed the S&P 500 (including dividends) by 5.9%.

Bronwyn Bailey, Vice President of Research for the PEGCC, explained that private equity will more consistently outperform public markets as the financial crisis moves further into the past.

“Private equity returns are less volatile than public equity, and the year-to-year analysis in this Performance Update shows that private equity is the consistent, long-term winner for investors,” said Bailey.

“The value of private equity – especially in terms of investment returns – is how strong and consistent it performs over the long term,” said PEGCC President and CEO Steve Judge. “This performance update is the latest reminder that private equity continues to be the top performing asset class, net of fees, for public pensions, charitable foundations, and other investors.”

The PEGCC’s measure for private equity fund performance is based on the median of publicly available benchmarks. This median measure indicates that private equity funds returned an annualized 14 percent, 16.8 percent, 17 percent, and 18.1 percent during 10-year, 5-year, 3-year and 1-year periods, respectively.

Editing by Alex Akesson
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