The data from the private equity indices show that the average outperformance of private equity buyout investments over public equities was 4.22 percentage points over one year; 9.69 percentage points over three years; 8.19 percentage points over five years; and 7.5 percentage points over ten years.
Looked at another way, the average buyout investment returns were 18.01 percent for the year ending September 30, 2010; -0.64 percent for the previous three-year period; 6.85 percent for the five-year period and 5.55 for the ten year period. That compares to average public equity market returns of 13.79 percent for the one-year period; -10.33 percent for the three year period; -1.69 percent for the five-year period and -1.95 percent for the ten-year period.
Returns (net of fees) published by the New York State Common Retirement System, the Washington State Investment Board, the Oregon Public Employees Retirement Fund and Massachusetts’ Pension Reserves Investment Trust Fund all further validate the data. It shows that private equity investments made by the four pension funds on average outperformed the public equities indices by 9.27 percent in the one-year period; 10.09 percent in the three-year period; 12.74 percent in the five-year period and 9.39 percent in the ten year period.
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