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

504 WSO Academy Private Equity Session Reviews: 4.82/5

Pontifical Catholic University of Peru

Class of '18 Nov 2026 Cohort

5.00/5

Private Equity Career Roadmap (optional)

“I had my roadmap session with Arnau, and it was extremely valuable. As he is also a civil engineer from Spain, I felt comfortable from the start, and he quickly understood my background and career goals. He helped me identify the roles and types of companies I should target given my experience in infrastructure and project finance. He also gave me practical advice on how to position my profile and prioritize my applications. He is clearly very committed to his mentees, and his guidance was honest and tailored to my situation. I left the session with a much clearer plan, and I will definitely book another session with him in the future.”

Class of '23 Oct 2026 Cohort

5.00/5

Private Equity Short Resume Review / Recap

“Very good planning prior to the meeting and effective notes that allowed the session to go quickly and effectively. We covered a lot of topics on the resume and I recieved a good amount of notes that I can correct my resume in order to make it more specific for the PE companies I will work with. Was very helpful in the way of bringing out niche skills I have in order to maximise my chances at differentiating myself from more typical IB candidates. Also provided good insights on the MBA process, what is valuable and the WHY side of P.E. which I will go into depth with in my WHY statements that I am going to do. ”

See All 11,153 WSO Academy Reviews

2 Comments

IB

Associate 3 in IB-M&A

2y

Most Helpful

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.

Reply

Quote

Report

Other

Authored by: Certified Investment Banking Professional - 3rd+ Year AssociateCertified Investment Banking Pro

WSO Monkey Bot

O

2y

Est molestiae est est accusantium. Architecto deserunt dolorem autem enim dolor eaque eos. Corrupti perspiciatis aliquam dolor laudantium doloribus rerum accusantium. Et et magnam dolores. Laborum est omnis eum voluptas optio maxime non asperiores. Sequi cupiditate ut reprehenderit distinctio exercitationem quia doloremque.

+62	Is Joining PE still worth it?	36	43m
+29	Negotiating title for VP role?	21	3d
+21	How to explain short stint on resume	3	5d
+17	What’s one number you wish sellers disclosed before you spent time on a deal?	3	3d
+14	Being on really good MM deals. Question	9	7h
+13	Business class flight tickets standard?	11	3h
+13	On-Cycle Getting Pushed?	1	3d
+13	Are industry conferences worth it for proprietary deal sourcing?	4	3d
+11	Do sponsors prefer bullet financing or amortizing debt structures in LBOs?	9	4d
+10	Vector Capital 2026 Updated Views	2	4d

1	redever	99.2
2	kanon	99.0
3	Secyh62	99.0
4	BankonBanking	99.0
5	dosk17	98.9
6	GameTheory	98.9
7	DrApeman	98.9
8	Betsy Massar	98.9
9	CompBanker	98.9
10	numi	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Why do people not just invest in PE stocks?

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Why do people not just invest in PE stocks?

See All Comments - 100% Free

Trending Content - Private Equity Forum