On the Historical Outperformance of Private Equity

This BlackRock whitepaper, authored by its Private Equity Partners team, evaluates the historical outperformance of private equity against public market benchmarks.

• Performance Insights: Private equity delivered an annualized return of 11.6% (2005-2023), outperforming the MSCI World by 5% and the S&P 500 by 2.4%.

• Alpha Generation: Returns are driven by operational improvements, active ownership, and longer investment horizons, with pooled outperformance persisting across market cycles.

• Investor Implications: Manager selection is critical due to high return dispersion, emphasizing the importance of tactical strategies like co-investments and secondaries.

For a detailed exploration of private equity’s advantages and actionable insights, access the full report.