UBS Alternative Investments, 1 December 2010
5 Pages Posted: 7 Mar 2011 Last revised: 28 May 2013
Date Written: March 3, 2011
The fundamental reason for investing in private equity is to improve the risk and reward characteristics of an investment portfolio. Studies have shown that private equity returns do not correlate closely with returns from other asset classes, such as bonds and in certain cases public equities. Having an allocation to private equity therefore may help smooth out the returns of a balanced portfolio as well as provide additional sources of returns.
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