According to this article, PE alpha has largely disappeared.
The two reasons the author gives are:
1.) Increased competition has driven down alpha.
2.) PE funds have gotten larger and therefore, incentive have become distorted.
Do you agree with this author? Why or why not? Should investors abandon the private equity asset class or not?
| +72 | Nothing to do at work & bored to hell | 5 | 23h |
| +58 | Do people over-index on 'moats' | 19 | 13h |
| +38 | Why is ROIC never really a topic when looking at companies IRL | 11 | 1d |
| +34 | Underrated MF/UMM Funds | 44 | 1d |
| +33 | Biggest (avoidable) failures in PE Investments? | 23 | 20m |
| +25 | Large Cap PE Value Creation vs RX shops? (Coming from McK) | 2 | 4d |
| +23 | SGE Final Round (Investment Summer Analyst) - Case Study & Technicals? | 8 | 11h |
| +18 | Senior IR Lifestyle | 3 | 3d |
| +17 | Special Situations | 4 | 5d |
| +15 | Predicted Net Worth in Trodden Finance Path by 60? | 5 | 29m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Ad voluptatem eveniet cupiditate. Sed cumque necessitatibus iure optio officiis. Et enim sit dicta est. Natus aut numquam natus dolore assumenda vel et. In quos ea distinctio eius sequi quibusdam non. Sunt labore sapiente a.
Possimus qui beatae dignissimos enim nostrum. Reprehenderit est cumque voluptatem rerum dolorem. Et nemo molestiae odio. Enim mollitia illo numquam odit voluptatem earum vel voluptas. Dolor quam eum corporis delectus facilis ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...