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Private Equity Outperforms S&P 500 in Delivering Returns for Investors

The Industry Maintains Its Position as Best Performing Long-Term Asset Class

WASHINGTON – Private equity again outperformed traditional equity markets in providing the highest long-term returns, net of fees, for investors in Q4 of 2016, according to the American Investment Council’s (AIC) latest Performance Update Report, released today.

“Private equity remains the best destination for investors seeking long- term gains,” said AIC President and CEO Mike Sommers. “The focus on delivering value over the long-run to pensions, endowments, and other investors separates private equity from other asset classes.”

The report found that annualized private equity investments outperformed the S&P 500 total returns index over the 1-, 3-, and 10-year time horizons. Private equity performance also exceeded the Russell 3000 Index over a 10-year time frame, generating a 10.7 percent annualized return for investors.

Private equity firms delivered excellent results for pension funds. Notably, returns outpaced the S&P 500 and Russell 3000 over the 10-year horizon by 2 percent and 2.5 percent, respectively.

“Institutional investors value private equity’s commitment to delivering superior medium and long-term, risk-adjusted returns,” said Bronwyn Bailey, AIC’s Vice President of Research and Investor Relations. “Our latest Performance Update Report affirms the decisions by so many portfolio managers to partner with private equity funds as an essential part of their strategy.”

Read the full report here.

About the American Investment Council

The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.