Over the past three years, private equity has generated a premium of 28% over public equities. One dollar invested in the private markets in 2017 would be worth $1.52 today based on the chart below. Private real estate and private credit performed quite well compared to public equities as you consider their different risk profiles.
Growth of $1
Private Equity: A broad term used to describe any fund that offers equity capital to private companies.
The MSCI World Index tracks large and mid-cap equity performance in developed market countries.
Real Estate: Any closed-end fund that primarily invests in non-core real estate, excluding separate accounts and joint ventures.
Credit: This strategy focuses on providing debt capital.