Private equity returns continue to outpace stocks over the long term, according to a new report from industry association Private Equity Growth Capital Council.
As of March 31, returns from private equity funds net of fees beat the S&P 500 Index, with dividends, by 6.6 percentage points over the last 10 years (14 percent versus 7.4 percent). The PEGCC's measure for private equity fund performance is based on the median of publicly available benchmarks.
"Private equity continues to outperform public equities over the long term," PEGCC president and CEO Steve Judge said in a statement. "Our research shows that private equity has consistently outpaced the S&P 500 over a 10-year horizon, providing public pensions and other investors with superior returns at lower volatility."
While PE has outperformed over 10 years, it has fallen short of more recent stock market benchmarks. Median returns have been under The S&P 500 and Russell 3000 Index compared to one-year, three-year and five-year periods.