How has PE alpha performance been? i understand below 5Y chart may not be true representative of US PE performance since public mkts were leveraged on tech but i wonder if PE biz is now becoming more about fee earning (vs. carry; exits are difficult) for funds? if, so what are your thoughts on future of PE, secondaries pivot?
and if thats the case, wouldn't buying few listed PEs (CVC, EQT, etc.) with tech exposure a better strategy than investing as illiquid fund investor?
(Source - CVC FY25 annual report)
Negative alpha in the US over the last 5, 10 and 15 years for LPs. Billions in carry dollars for the GP. One problem - the hurdle rate in private funds.
You can bet that the European "PE" returns contain US/international exposure (most European funds invest abroad, CVC being a prime example), and hence they match it to the wrong index to flatter themselves.
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