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Private equity outperforms public market

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A welcome fillip to the asset class, the research shows that since 2006, sponsored companies in Europe have beaten their quoted peers on key financial metrics. 

The research shows that European portfolios have a higher share of value growers (31 per cent compared to 25 per cent) and a lower proportion of underperformers (20 per cent against 28 per cent). 

 “At a time when the entire global finance industry is under scrutiny, this study shows that the private equity model drives value well beyond wealth creation for the job owners,” said Michael Ostroumov, one of the authors of the study.

More than 100 European private equity portfolios were matched against their public peers as part of the study.It found that even in 2009, the recession’s nadir, the average drop in revenues for the asset class was 3.8 per cent compared to 9.1 per cent for publicly traded peers.

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