PEGCC Q1 2014 Performance Update: Private Equity Outpaces S&P 500 Over Long-Term Horizons
WASHINGTON, D.C. – Private equity returns continue to outpace the S&P 500 over the long term, according to the most recent quarterly Performance Update Report from the Private Equity Growth Capital Council (PEGCC). As of March 31, 2014, returns from private equity funds (net of fees) beat the S&P 500 (including dividends) for the 10-year horizon by 6.6 percentage points.
“Private equity continues to outperform public equities over the long term,” said PEGCC President and CEO Steve Judge. “Our research shows that private equity has consistently outpaced the S&P 500 over a 10-year horizon, providing public pensions and other investors with superior returns at lower volatility.”
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 14.0 percent, 17.4 percent, 14.2 percent, and 19.1 percent during 10-year, 5-year, 3-year and 1-year periods, respectively.
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 March 31, 2014, 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 pegcc.org.
