Investing in private equity

Private equity (PE) investments are investments in privately-held companies, that trade directly between investors instead of via organized exchanges. PE is often considered a distinct asset class, and it differs from investments in public equity in fundamental ways. There is no active market for PE positions, making these investments illiquid and difficult to value. PE funds typically have horizons of 10-13 years, during which the invested capital cannot be redeemed.We survey the academic research concerning the risks and returns of institutional PE investments, as well as the optimal holdings of PE in an investment portfolio. Researchers have had limited access to information about the nature and performance of PE investments, and so research in this area is still preliminary and often inconclusive.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

MORE ABOUT NETSPAR


Mission en strategy           •           Network           •           Organisation           •          Magazine
Board Brief            •            Actionplan 2023-2027           •           Researchagenda

ABOUT NETSPAR

Our partners

B20231704_DNB_Blacklogo
svb
B20211216_shell download
B20160708_uva
B20200924_Ortec Finance logo 250px_banner_small
View all partners