Should individual investors join the private-equity party?
Mark Hulbert
Private equity isn’t all it’s cracked up to be, a review of Wall Street research shows
Published:
Think twice—better yet, three times—before jumping at the increasing opportunities that individual investors now have to get into private equity.
That’s because the average private-equity (PE) fund lags behind some publicly available index funds, according to new research from Dimensional Fund Advisors. PE funds may still provide valuable diversification, but that is a secondary virtue compared with the outsize returns that are motivating many individuals to seek out PE funds.