PEGCC Q4 2013 Performance Update: Private Equity Continues To Provide Superior Returns Over Long-Term Horizons
WASHINGTON, D.C. – 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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About the Private Equity Performance Update
PEGCC calculates the excess returns from private equity by comparing the median values from third party data providers to the S&P 500 Total Return index. The research was compiled using data as of December 31, 2013, the most current data available. All returns are calculated net of fees.
About the Private Equity Growth Capital Council
The Private Equity Growth Capital Council (PEGCC) 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 and formerly known as the Private Equity Council, the PEGCC is based in Washington, D.C. The members of the PEGCC consist of the world’s leading private equity and growth capital firms united by their commitment to growing and strengthening the businesses in which they invest. More information about the PEGCC can be found at www.pegcc.org.
