For over 20 years, Private Equity investments have outperformed their counterparts in the public market. This is largely due to their ability to better weather turbulent markets and economic downturns. In fact, recessionary environments have acted as catalysts for growth in the private equity landscape due in part to opportunities created. Today, the COVID-19 pandemic has created a capital vacuum providing investment opportunity in this space that hasn’t been seen in over a decade.
The superior performance of private equity investments can also be attributed to an increase in companies choosing to wait longer before going public, ultimately coming to market fully valued. Exponential growth is now occurring in the private stage, offering early investors an exit at elevated public prices. Whether private businesses are grappling with the demands of their growing enterprise or looking to solidify their legacy for the future, the need for investment capital is abundant. As a result, Private Equity has grown to become the single largest Alternative Asset Class globally.
With Private Equity yielding superior investment returns, often with significantly reduced volatility, it is no wonder that institutional investors have been continuously increasing their exposure to this asset class in their portfolios.
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