Private Equity Continues Strong Outperformance
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Private Equity Continues Strong Outperformance

Private equity continues to deliver superior returns to its investors, according to the most recent quarterly performance analysis by the Private Equity Growth Capital Council. A link to a free copy of the PEGCC’s 31-page report is available at the end of this article.

Private equity returns (net of fees) outperformed the S&P 500 (including dividends) for 3-year, 5-year and 10-year horizons ending September 30, 2012 by 2.5, 5.5 and 5.7 percentage points respectively. Private equity underperformed the S&P 500 during the 1-year horizon due to the sharp recovery of domestic equity markets during this time.

“Private equity investment provides benefits to businesses and communities in every state,” said Steve Judge, president and CEO of the Private Equity Growth Capital Council. “This research demonstrates the superior returns private equity delivers to its investors. Those who put money in private equity ten years ago beat the S&P 500 by 5.7 percentage points.”

Pension funds saw particularly impressive gains from private equity investment. The PEGCC research analyzed returns from 12 of the country’s largest public pension funds with available financials and found that median private equity returns (net of fees) outperformed the S&P 500 on 3-year, 5-year and 10-year horizons by 1.2, 3.6 and 5.0 percentage points, respectively.

“Private equity performance continues to strengthen the retirement security of millions of Americans by providing pension funds five percentage points more in returns annually over the last 10 years,” said Bronwyn Bailey, PEGCC vice president of research. “These investments mean stronger, more reliable retirement funds for firefighters, teachers and police officers across America.”

The Private Equity Growth Capital Council is an advocacy, communications and research organization, and resource center established to develop, analyze and distribute information about the private equity and growth capital investment industry and its contributions to the national and global economy. Established in 2007, the PEGCC is based in Washington, D.C. (www.pegcc.org).

Click HERE for a free copy of the Private Equity Growth Capital Council’s quarterly performance analysis.

© 2013 PEPD • Private Equity’s Leading News Magazine • 3-15-13

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