Private equity has long been a desirable asset class for those with the opportunity to profit due to its unique qualities. The unrealized potential for many ordinary investors’ portfolios is now a reality as access to private equity is expanding. The potential to increase the overall portfolio return is the main justification for adding private equity to a portfolio.

In light of this, research demonstrates that private equity returns compare favorably on a number of dimensions, which we will discuss in this article: when compared to the public equity market, when compared to other private market asset classes, when added to a portfolio, and on a quartile-by-quartile basis.