Private Equity

Myths Of Private Equity Performance: Part Iii | Cfa Institute Enterprising Investor

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Private equity is not more resilient than other asset classes. Quite the opposite. : Private equity (PE) investment returns are neither reliable nor predictable. Many of my clients are prepared to accept these as facts. But one private equity myth is harder to dispel, that of the PE sector’s resilience. Unlike other asset classes, the legend goes, private equity can weather the vagaries of the economic cycle. Where does this popular belief come from? It is derived in part from the fact that some practitioners believe (and report) that PE is uncorrelated to the public markets.

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