News
Report Shows Continued Value Of Private Equity For Long-Term Investors

Private Equity Returns To Pension Funds Outperformed Stock Markets Over The Long-Term

WASHINGTON – Private equity continued its ability to generate the highest long-term returns, net of fees, for investors, according to the American Investment Council’s (AIC) Performance Update Report 2016 Q3, released today.

“Private equity prioritizes a long-term approach, rather than focusing on short-term gains,” said AIC President and CEO Mike Sommers. “This approach is why no other investment strategy can compete with private equity over a 10-year horizon, especially the public markets.”

The report found that annualized private equity investments over the 3- and 10-year time horizons outperformed the Russell 3000 index by 0.7 percent and 3.3 percent, respectively. Private equity also outpaced S&P 500 total returns over a 10-year time-frame, generating 10.7 percent annualized profit for investors.

Bronwyn Bailey, AIC’s Vice President of Research and Investor Relations, explained, “Pension funds look to generate steady returns, which is why they routinely turn to private equity. This Performance Update Report shows the approach works for them: Over a 10-year horizon pension fund private equity investments saw 9.4 percent in annualized returns, compared with 7.4 percent in the Russell 3000 and 7.2 percent in the S&P 500.”

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.