This paper looks at the performance of LPX Private Equity indices as proxy for Private Equity (PE) performance in North America, Europe, UK and the World and compares them to their respective regional stock and bond indices fromJanuary 1999 –December 2016. PE has outperformed stocks and bonds in all regions with much higher returns. However, PE also had higher risk compared to stocks and bonds in all regions. On a risk-adjusted basis (Sharpe, Sortino & Omega Ratios), PE has outperformed stocks in all regions of the world. However, PE underperformed bonds in North America, but outperformed bonds in UK and Europe on a risk-adjusted basis. PE also created much higher wealth compared to other asset classes. Overall, results indicate that PE has created tremendous value for their investors.
Authors: Martin Hanby, Srinidhi Kanuri, Anthony Fulmore, Robert Mcleod
Publication date: 20 June 2022
Published in: Journal of Applied Business and Economics
Volume/ Ausgabe: Volume 24(3)
Source download link: https://articlearchives.co/index.php/JABE/article/view/2567/2544