Recent performance data raises the question of whether private equity is still delivering sufficient compensation for illiquidity

  • Private equity’s long-run outperformance over public markets has come under pressure as financial conditions have tightened

  • Our analysis shows that excess returns have compressed, falling to around 3% over comparable small and mid-cap public equities

  • Recent higher dispersion within the asset class means private equity’s investment case may now rest more on manager and strategy selection

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