Chapter 10
Private equity: information-based investment returns
The past and prospective investment performance of the private equity market has been analysed in numerous studies. But even if the estimates produced by those studies are reliable, investors cannot take for granted that they will be able to earn them.
Investors should avoid private equity investing unless they believe that they have access to skilled investment managers. The key to unlocking returns in private equity is information, and investors have to believe that their managers have an edge that enables them to deliver at least market returns. Investing in an arrangement that lacks this edge will condemn the strategy to inferior performance.
The appropriate place for private ...
