Unlock insights on private equity with expert analysis
Private and public equity both represent ownership in businesses – but they play different, complementary roles in a modern portfolio. The Private Markets Unpacked: Revisiting the case for private equity report explores how private equity compares to public markets across structure, liquidity, valuation dynamics, risk, and long‑term return characteristics. Explore key findings below, or read the full report with a subscription to Preqin Insights+.
Correlations between private and public equity
Public equities may offer greater liquidity, transparency, and broader market exposure, while private equity may enhance returns through the illiquidity premium, operational improvements through active ownership, and access to earlier-stage growth companies.
Assess risk and dispersion
Private equity has historically delivered a modest return premium, operational control, and exit timing, but with higher illiquidity, leverage, and manager dispersion. This makes sizing, pacing, and GP selection critical.
Quantify diversification
With moderate correlation to public markets, private equity can enhance diversification and risk efficiency within an equity allocation when thoughtfully integrated alongside liquid assets.
Download a free copy of Private Markets Unpacked: Holding periods
This previous report in the series examines key characteristics of private markets based on the latest data from Preqin:
Holding periods are a crucial concept within private equity and impact liquidity for investors.
The trend we have seen is a lengthening of private equity buyout holding periods, influenced by the softening of the exit environment since the increase in policy rates in 2022.
Private equity exits remain subdued, with larger exits to lift aggregate exit value.
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