Private equity (PE) is off many investors’ radar even though it has a reputation for outperforming equities markets. With high fees, a long investment horizon, and an opaque structure many people simply aren’t interested. A recent paper from the National Bureau of Economic Research tried to quantify these effects and determine just how much alpha PE has to generate to be a better deal than investing in other assets. Average return of private equity funds “While it is generally accepted that the average return of private equity (PE) funds exceeds the return on the market, it remains controversial whether this…
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