Private Equity footprint

[rffrydr]

Some interesting stats from the FT:

http://www.ft.com/cms/s/1eeafc58-4d72-11db-8704-0000779e2340.html

"For all the headlines and the high profile, the private equity market still remains small relative to traditional bond and equity markets: worldwide, private equity investments amount to around $900bn, which is a fraction of the $60,000bn in the mainstream bond and equity markets."

That seems pretty big to me; esp. if you stripped out the "buy and hold."

"Thomson Financial, in conjunction with the European Private Equity and Venture Capital Association, estimates that the net pooled internal rate of return since inception for all European private equity funds formed between 1980 and 2005 was 10.3 per cent. But, if this seems good, it masks two crucial factors.

First: the variation in performance between different private equity funds is enormous and far higher than for conventional equities and bonds. Second: the returns are heavily skewed towards the top performing funds – again, far more so than for UK equity funds.

Thus, while 10.3 per cent was the overall figure, the pooled return figure for the top quartile funds was 22.9 per cent while the median rate of return figure was a less impressive 0.5 per cent. In other words, nearly 50 per cent of funds recorded a negative rate of return."

That's what you'd expect. And I expect what you'd want. I just wonder isf that's what the San Diego retirement fund expected.

No doubt some of those 50% will surprise on the upside all-of-a-sudden (east german property?).

[rffrydr]

Private Equity now a "legal matter"

http://www.sharewatch.com/story.php?storynumber=246761

Spitzer effect in the offing?
_________________
Today is the Tomorrow you worried about Yesterday!