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.

Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. Private equity is a high-risk investment and you are unlikely to be protected if something goes wrong. Subject to eligibility. Please see https://www.moonfare.com/disclaimers.