<p>With all the challenges facing the Eurozone, pension funds and other institutions evaluating private equity investments in the region are understandably wary. “Remind us again,” many ask. “Why should we invest in Western Europe?”</p>
<p>Here’s one reason why: Private equity investments in developed Europe have performed as well as, or better than, those in the U.S. on a returns basis. For example, the most recent five-year net internal rate of return for private equity investments was 12.5% in developed Europe, vs. 11.6% for the U.S. The gap was even wider for the 15-year horizon.</p>