Private Equity Funds Are Losing to the S&P 500. Why Exclusive Investments for the Wealthy Aren't Always Better

Source: International Business Times

Private equity funds have significantly underperformed the S&P 500 over the past several years, highlighting that expensive and difficult-to-access investments aren't necessarily superior to the inexpensive funds available to virtually anyone. Reuters For years, private equity has carried an aura of exclusivity as funds are generally reserved for wealthy investors, charged substantially higher fees than ordinary index funds, and promised access to opportunities unavailable on public markets. But lately, that exclusivity hasn't translated into better returns.