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Why Private Equity
Long-term cash-flow based average returns in private equity are in the order of 14-18% p.a. net to the investor. Top-quartile funds clearly exceed 20% p.a.
Private equity investing is however not based on efficient markets or mechanical strategies such as investing in bonds or public equities. It is based on individual skill. As such, only a disciplined long-term investment process with access to the key managers and inside information generates high returns and regular cash flows on a sustainable basis.
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