Private equity has been booming in recent years, with a lot of public money shifting into the private markets. At the recent Capstone Student Investment Conference (CISC), Jennifer Reid, a partner at L Catterton discussed a differentiated approach to private equity investing.
In search of alpha
She noted that PE is about $5 trillion worth of capital, with $2 trillion of capital to be deployed from a PE standpoint. That capital comes from institutional investors, sovereign wealth funds, pension funds, retirement funds and family offices.
All these investors are pouring capital into PE in search of alpha. Compared to the S&P 500’s return of about 8% over the last...
