Private equity boon for public funds

Figures showed the asset class had outperformed the rest of funds' portfolios by between 4%-9% per year, with European investors earning higher returns than their US counterparts within this field.

Preqin's report stated: "Private Equity is sometimes described as 'high risk, high return'. Not for these public pension plans: taken over a range of time periods from one to ten years, private equity out-performed for these pension plans in 82% of cases."

Some 108 public pension plans from the US, UK, Canada and Europe responded to the survey. Their combined assets under management totalled $3.9trn.

Another survey carried out by Preqin showed 74% of institutional investors said private equity returns had met their expectations with a further 24% stating their expectations had been exceeded.

Some 95% of these investors predicted their private equity investments would out perform public market returns from a 2% advantage to over 4% in coming years.