What happens to private equity valuations when public equity markets collapse? : Private equity (PE) often claims the financial crown of outperformance. But I am referring to that other, now infamous, Latin word for crown — corona — the shape of which lends its name to the current coronavirus pandemic. So how will it affect PE? PE investing is about absolute return, not outperformance, in my experience. Survey results referenced by Paul Gompers, Steven N. Kaplan, and Vladimir Mukharlyamov back this up.