MYTHS OF PRIVATE EQUITY
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Why analytical tools fail in assessing PE performance against other asset classes

The inconsistencies inherent in the analytical process render comparison exercises futile.

    Published Fri, May 7, 2021 · 09:50 PM

    THREE myths about the reliability, predictability, and resilience of private equity (PE) performance play a salient role in drawing investors to the asset class.

    To prove outperformance, however, PE returns are assessed relative to those of other asset classes. From this practice, the myth of performance comparability emerges.

    Myth: Private equity performance can be benchmarked

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