Why do people not just invest in PE stocks?
If the stock market has 8% return and PE has 20%, why not just buy PE stock like KKR? I think i am missing something
Trending Content - Private Equity Forum
Career Resources
WSO Free Modeling Series - Now Open Through
November 30, 2026
9 Free Financial Modeling Lessons
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.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Because buying stock is investing in the corporation, while the fund is investing in a strategy. KKR stock is dependent on a lot more than how their investments do - firmwide margin, how well they are attracting investors to their funds, broader stock market, while the fund return is based only on the marks on a handful of investments. Those impact KKR's bottom line, but they are not the sole driver and the returns do not flow straight through to the stock performance.
KKR stock is not going to consistently return 20%+ every year - that group has had a very strong last ~18 months, but they were also down 40% in 2022.
Dolores quia necessitatibus sint est eum necessitatibus. Officiis aliquam et expedita explicabo aperiam inventore. Reiciendis aut excepturi nisi.
Qui ullam quis eius dolorem et ex iste. Fuga et et quaerat. Doloribus sed et quibusdam. Ipsam id earum sequi nihil porro enim. Molestiae atque porro fugiat voluptatibus quo. Et libero et et autem.
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...