Private equity: Sustainable and attractive performance

Private equity has established itself as one of the most successful asset classes in recent decades. In 15 of the last 20 years, private equity funds generated returns of around 15 per cent, clearly outperforming global equities (9.2 per cent). Funds in the top quartile funds achieved as much as 23 per cent per annum. DBAG funds are among the top performers in the European mid-market segment. 

Stability in times of crisis
Private equity proved resilient even during volatile periods. Global equities lost close to 50 per cent of their value during the Great Financial Crisis of 2008/2009. Private equity funds saw a maximum drawdown of around 30 per cent during the same period – recovering within three years, as opposed to more than five years for equities.

Access to innovation and growth
The private equity investment universe is huge. In Germany, only three per cent of enterprises with sales exceeding 50 million euros are listed; in the US, 15 per cent of those with sales of more than 100 million dollars are. Many of the most exciting growth companies are privately owned, especially in the technology, healthcare and renewable energy sectors.

Private equity as a strong pillar for the portfolio
Institutional investors such as foundations, pension funds and family offices have already allocated around 25 per cent of their portfolios to private equity. According to current forecasts, private markets volumes are set to rise from 13 trillion US dollars at present to more than 20 trillion by 2030. Private debt alone is projected to grow to 4.5 trillion US dollars.

Private equity remains a driver of returns and innovation. If you are looking for exposure to the growth enterprises of the future and want to protect your portfolio against equity market volatility, private markets are the answer.