Do Private Equity Investments Outperform?

2019-05-06T17:27:29+00:00Dec 2013|Private Equity, Small Stocks|

The initial academic work on the returns of private equity investments generally found underperformance relative to public market benchmarks like the S&P 500. More recent research, which apparently uses higher-quality data, is coming to the opposite conclusion. But is it really? Professor Ludovic Phalippou from the University of Oxford argues that while this recent research appears to be valid, the S&P 500 isn’t the right benchmark.