Public markets and some asset classes outperform private equity in the short term, but, even with fees, private equity provides stronger returns compared to public markets and other asset classes over 5, 10, 15, and 20-year times, according to a recent American Investment Council (AIC) report. Specialist private equity delivered the highest long-term returns.
The report highlights the superior performance of private equity investments in the long term, examines fundraising and exit trends, and analyzes how both individual savers could benefit from incorporating private equity into their investment strategies.
“The data is clear: private equity provides consistent and reliable long-term returns for investors while safeguarding financial stability for millions of Americans,” AIC President and CEO Will Dunham said. “As policymakers consider how to expand access to private investments for millions of savers with a 401(k), AIC is proud to share this report showing why private equity has become one of the most reliable tools for investors seeking consistent performance and diversification.”
Private equity offers investors exposure to companies and industries not available in public markets. Private firms comprise 87 percent of American companies, a 62 percent increase from 2002.
Between 1997 and 2024, the number of publicly traded U.S. companies dropped from 8,800 to 3,952.