This paper from Mackenzie Investments develops and then analyzes an approach to creating liquid private equity.
Historically, private equity has been an attractive investment vehicle, generally outperforming stock market indices by 2-3% per year over the past 20 years. It also has relatively low correlation with stock indices, thereby offering attractive diversification to investors already invested in stocks and has significantly lower volatility than the stock market, particularly during stock market crashes.
The whitepaper includes:
- A deeper understanding of private equity’s performance
- The theory: private equity’s outperformance and liquid private equity’s opportunities
- Creating liquid private equity
- The empirical analysis of simulated returns
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