Preqin Analysis Shows Private Equity Earns Strong Returns for Investors
Preqin’s recent August Spotlight analysis shows that investors in private equity – including pension funds, endowments and charitable foundations – earned superior returns compared to all other asset classes. Private equity’s long run success is likely one reason why global assets under management in private equity have hit record levels of nearly $3 trillion. In its recently released study of private equity over the last 10 years, Preqin states that private equity funds performance has proved resilient since the end of 2008, unlike other asset classes.
The Preqin Quarterly Index, which tracks the quarterly change in the performance of the private equity industry, shows at the end of 2011, quarterly returns to buyouts were nearly 2.5 times the level they were at the end of 2000. The index tracks the returns of more than 6,000 buyout, real estate, distressed and venture capital vehicles. On a 10-year horizon ending December 2011, the annualized return to buyout funds and all private equity strategies was over 19.0% and 11.9%, respectively.
Find the full report here.
