Private Equity: Viable Alternative Investment Or Empty Promise?

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Private Equity: Viable Alternative Investment Or Empty Promise?

Private Equity: Viable Alternative Investment Or Empty Promise?

Brandes Institute

Brandes Investment Partners

June 2015

What Investors Need To Know When Choosing A Private Equity Manager

investor 1652197064It's no secret that this year has been a volatile one for the markets. The S&P 500 is down 18% year to date, while the Nasdaq Composite is off by 27% year to date. Meanwhile, the VIX, a key measure of volatility, is up 49% year to date at 24.72. However, it has spiked as Read More

Abstract:

In a lively roundtable debate, members of the Brandes Institute Advisory Board (BIAB) and guest speaker Brad Case discussed the pros and cons of private equity and whether the investment class is a viable alternative.

While some Board members shared their successes, Case cited challenges in the structure of private equity funds and the credibility of their performance reporting. During the discussion, key considerations surfaced in support of PE, balanced out by a number of key issues questioning its viability.

Ultimately, like any other investment, pros and cons should be weighed according to an investor’s long-term financial goals, risk tolerance and the probability of success.

Private Equity: Viable Alternative Investment Or Empty Promise? – Introduction

Private Equity Pros and Cons

Case asserted that strong performance among private equity firms, if it exists at all, has been generated by appl