If you had invested in the FTSE All-Share Index this time last year, you’d have made a return of about 5%. Invest five years ago and you’d have made a compound annual return of about 2%. Ten years ago? Just over 4%.
If you wanted more impressive returns, then, you would have looked to private equity, which has been the best performing asset class globally in recent decades. Had your investment tracked a global private equity benchmark instead, you’d have made a return of 10% over the past twelve months, an annual growth rate of 13% over five years and 15% over ten.
Private equity has a misplaced reputation that needs to be addressed using facts. As an investment in recent years, you could not have made a better return. There are many ways in, but listed private equity is the most straightforward and once investors understand the opportunity, it is hard to argue against it.
Article originally published by Spears https://www.spearswms.com/priviate-equity-opinion/