How PE could contribute to a more prosperous retirement
White paper
How PE could contribute to a more prosperous retirement
May 26, 2025
13 pages |arrow icon5

About the report

As public markets shrink and companies remain private for longer, we believe PE offers access to high-growth industries and transformative technologies that public investors may otherwise miss. This can make the asset class a powerful enhancement to retirement portfolios, potentially providing robust returns and diversification benefits beyond traditional stock-bond allocations.

Key takeaways

  • Pension funds have long benefited from private equity, providing plan participants with diversified and potentially higher sources of returns, especially when compounded over decades. 
  • As private equity becomes more accessible, individual investors can now capitalize on its advantages. However, selecting the right fund manager is crucial, as performance varies widely. 
  • Private equity's multi-year investment cycle and long-term hold may naturally align with retirement planning and could help insulate investors from short-term market volatility.
  • Private equity has historically outperformed public markets. As our analysis of capital market assumptions reports shows, leading global asset managers project that this trend will likely continue. 
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