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Private equity outperformed S&P 500 most of the time

Private equity investments outperformed the S&P 500 in the 1-, 5- and 10-year time horizons, according to new analysis by The Private Equity Growth Capital Council.

By Paula Aven Gladych | Updated on October 19, 2012

As communities around the country struggle to fund the retirements of their public employees, pension funds have looked to private equity for its consistent outperformance of public markets, bolstering pensions’ portfolios across the country. 

The Private Equity Growth Capital Council (PEGCC) released a new analysis of returns provided by private equity investments compared to the S&P 500.  Based on the analysis of private equity benchmarks, private equity outperformed (net of fees) the S&P 500 for 1, 5 and 10-year time horizons by 1.8, 3.7 and 7.0 percentage points, respectively.  Private equity underperformed the S&P 500 during the 3-year time horizon due to the index’s historic dip during the financial crisis, which inflated the S&P 500’s gains during this period, the report said.

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