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What investors need to know about private equity investing

March 27, 2025

Private equity has historically outperformed public equities, with the Preqin Buyout Index achieving 20-year annualized returns of 14.8% versus those of 9.2% from MSCI World.¹
Private equity’s long-term investment horizon, coupled with direct control through which managers can bring operational skill to bear, means that investment managers can be afforded the time to effectively execute value-add theses without being burdened by daily mark-to-market volatility.
Diversification of investments across strategy, vintage year, sector, stage, and geography is key to building a successful private equity program.
Manager selection is also important for investors to consider, due to the wide dispersion in private equity manager performance.

March 27, 2025

Why should you consider investing in private equity, and what do you need to know before you do? Our foundational research paper covers all aspects of the asset class, from how to ensure your portfolio is properly diversified to how to select the right manager for you.

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What investors need to know about private equity investing

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