Private equity creates more valuable companies.

Private equity firms seek out companies in which they believe they can unlock significant value by changing the business strategy, investing new capital or injecting new managerial talent. Private equity ownership fosters a climate in which companies can do what is necessary to achieve increased profitability over the long run.

Winning private equity strategies must differentiate themselves on the basis of fundamental business improvements that often are more difficult to achieve by current managers working under the constraints of public ownership.

Private equity creates value for millions of Americans.

Public and private pension funds, endowments and foundations are the largest investors in private equity funds. Returns from private equity have translated into stronger public employee pension programs, more funds for college financial aid and scholarships and more funds for research and other causes supported by charitable foundations.

According to the most recent research, through 2012 private equity funds worldwide have distributed more than $1.4 trillion to limited partner investors.

Private equity delivers superior returns to its investors.

Private equity delivers superior returns to its investors, including public and private pension funds, university endowments and charitable foundations.

  • Private equity delivers significant benefits to its investors and has a proven track record of outperforming other traditional asset classes.   As of March 2015, private equity outperformed the S&P 500 Index by 4.9 percentage points on a ten-year basis.
  • A review of 150 public pension funds across the U.S. found that private equity delivered a 12.3 percent median 10-year annualized return to pension funds, outperforming the returns of other asset classes (fixed income, listed equity and real estate).

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