Private Equity Returns Continue to Outpace S&P 500, According to PEGCC Quarterly Performance Update
Judge: “This report highlights the superior returns that attract limited partners to the private equity and growth capital asset class.”
Washington, D.C. – The Private Equity Growth Capital Council released its latest quarterly performance update today, which shows private equity returns (net of fees) outperformed the S&P 500 (including dividends) for 3-year, 5-year and 10-year horizons by 2.6, 2.2 and 6.1 percentage points, respectively.
“Private equity continues to play a critical role in the U.S. economy by growing and creating more valuable businesses across the country, said PEGCC President and CEO Steve Judge. “At its core, private equity is about strengthening companies to generate profits for limited partners, including pensions endowments and foundations. This report highlights the superior returns that attract limited partners to the private equity and growth capital asset class,” said Judge.
The PEGCC research team also analyzed returns from 13 of the largest U.S. public pension funds with available financials and found that the pensions’ median private equity returns (net of fees) outperformed the S&P 500 on 3-year and 10-year horizons by 0.2 and 5.5 percentage points, respectively.
“This private equity performance analysis supplements our recent annual study showing that private equity returns to large public pension funds outperform all other asset classes over a 10-year time horizon,” said Bronwyn Bailey, PEGCC vice president of research. “Private equity is an essential asset class for pensions, foundations and endowments looking for superior investment performance from patient capital,” Bailey concluded.
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