Private equity has the potential for high rates of return, superior to those that can be expected from public markets. Top quartile managers in particular can be expected to consistently outperform public markets.
The persistency of returns means that selecting successful GPs over time has a high probability of building a high-performing private equity portfolio.
The privileges enjoyed by private equity managers, including access to inside information, their ability to custom design investment structures and imbed shareholder rights and their direct involvement with management all represent advantages that are simply not available to a portfolio investor in public equity.
Private equity represents attractive diversification, including access to a broader investment universe than that available to public equity investors.
