5 September 2016
For decades, institutional investors have been investing in private equity because of its double-digit returns, low correlation with quoted markets and resilience. Private equity has delivered average returns of 14.9 per cent over the past 10 years, with the small buyout sector being the best performer of the market.
Private equity should not be confused with investments made by venture capital investors. While both investment types are made into private companies, venture capital investments are made into early-stage, normally pre-profit and often pre-revenue businesses.