Private Equity & Hedge Funds
Industry Trends

Scroll Down

$7.35 Trillion

Private Equity1 & Hedge Fund2 Industry

Total assets for the private capital industry include private equity, private debt, real estate, infrastructure and natural resources funds.

Private Equity Funds
Hedge Funds
$0.70
$0.49
2001
$1.19
$1.11
$1.21
2005
$2.32
$2.75
$1.92
2010
$4.67
$4.11
$3.24
1H 2019
$7.35

Institutions Increase
Allocations to Alternatives by

5x

Alternatives include hedge funds, real estate, private equity,
commodities and others.3

alternatives
cash
bonds
equities
5%
3%
32%
60%
2001
25%
2%
27%
46%
2018

Manager Selection Matters

Top quartile private equity and hedge fund managers can outperform bottom quartile
managers by 10-12 percentage points per year.7

Average, Top Quartile, Bottom Quartile Performance of Managers
Average Top Q Bottom Q Public Global Equities Public Global Fixed Income Real Estate Commodities Timberland Farmland Private Debt Private Equity Venture Capital Infrastructure Hedge Funds 25% 20% 15% 10% 5% 0% -5% -10% -15%

1. Preqin Alternatives in 2020 report

2. HFR 2020 report

3. Towers Watson 2018

4. 2018 Annual Report of each institution (for public corporations reference Form 10-K)

5. Pensions & Investments 2019

6. Preqin November 2019

7. CAIA. The Next Decade of Alternative Investments.