| ▲ | mbesto 2 days ago | |
Are you referring to Private Equity (as in MBOs/LBOs) or Venture Capital? None of what you're stating is rooted in reality or data. Source: https://www.bain.com/globalassets/noindex/2025/bain-report_g... > - The overwhelming majority of PEs lose money. What? No. Read the report: "Buyout funds continue to outperform public markets in all regions across time horizons longer than five years" > - Annualized return of PE in UK has been 2.1%, this doesn't even match parking money in short-term bonds. Once again, read the report. > The only ones that have profited out of PE, beyond the managers working there, are those that invested in the PE itself, meaning buying shares of the fund itself. I sold my business to PE and I profited nicely. So I'm not sure what you're concluding here... Take the parent's post with a grain of salt. | ||
| ▲ | epolanski 2 days ago | parent [-] | |
Buyouts. For VC we know there is an edge, but that edge belongs predominantly to the top 4. I'm concluding that investors thinking that giving their money to a PE fund hoping to have anywhere near the diversification and returns of a simple global market ETF are in for a rude awakening. Of course you profited nicely, it's who puts the money in the private fund that won't have any chance of beating a very simple global ETF buying your businesses. And gains in those highly unregulated and illiquid markets (that have insane fees) are what they are: virtual. In any case I ain't reading a 68 page report, and have no patience for yet another pointless pitch about PE, everything there was to say about PE can be found in this very simple summary by Ben Felix: | ||