Beyond benefits to the corporate sector and large institutions, does private equity benefit the broader economy and society?
Superior returns from private equity investments strengthen pension funds that provide benefits for millions of workers. By 2008, the total net profits distributed to investors worldwide by private equity funds raised through 2007 were $1.12 trillion, according to the research firm Preqin. Many public pension funds report that private equity investments are their top or among their top two performing asset classes. For example, private equity investments have generated returns of nearly 26 percent for the California State Teachers Retirement System (CalSTRS) in the last five years, making PE the fund’s highest performing asset class A corollary benefit from these exceptional returns is that dozens of states were able to avoid budget cuts or tax increases that would have been required to meet their legally mandated pension obligations to retirees who have devoted their careers to public service. More broadly, the previously cited research shows that private equity investment over time c
Related Questions
- I work in the private equity sector - what does Directorbanks service provide and what benefit will I get if I subscribe as a client?
- Beyond benefits to the corporate sector and large institutions, does private equity benefit the broader economy and society?
- What benefits do consumers recieve as a result of competition in private sector markets?
