Private Equity Investments Outperform Markets Over the Long Term

WASHINGTON – Private equity returns once again outperformed public markets over the long term, net of fees, according to the latest quarterly Performance Update from the American Investment Council (AIC).

Private equity returns surpassed the S&P 500 by 1.3 percent and the Russell 3000 by 1.2 percent over a 10-year horizon during the fourth quarter of 2017. Additionally, private equity returns topped the Russell 3000 by 0.7 percent and the S&P 500 by 0.4 percent over the shorter three-year window.

“This latest data once again show that private equity is a critical part of any diversified long-term institutional investment portfolio,” said Bronwyn Bailey, Vice President of Research and Investor Relations for the AIC. “By strengthening companies and building value, private equity provides pension funds, endowments, and other investors with consistent and stable returns.”

The Q4 Performance Update follows the release of the AIC’s 2018 Public Pension Study, which revealed that private equity delivered the highest returns of any asset class for public pension funds over a 10-year annualized return period.

“Private equity’s strong performance over the last decade demonstrates that the industry is a reliable, long-term winner for investors,” remarked Bailey. “America’s first-responders, teachers, and public servants can rest assured knowing that their pensions’ private equity allocations are a good investment.”

Read the full report here