GLOBAL - Public pension funds have benefited hugely from private equity investments, according to research body Preqin.
Preqin's report stated: "Private Equity is sometimes described as 'high risk, high return'. Not for these public pension plans: taken over a range of time periods from one to ten years, private equity out-performed for these pension plans in 82% of cases."
Some 108 public pension plans from the US, UK, Canada and Europe responded to the survey. Their combined assets under management totalled $3.9trn.
Another survey carried out by Preqin showed 74% of institutional investors said private equity returns had met their expectations with a further 24% stating their expectations had been exceeded.
Some 95% of these investors predicted their private equity investments would out perform public market returns from a 2% advantage to over 4% in coming years.
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