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A Guide to Private Equity

Private equity (PE) gives investors access to a vast universe of private companies—businesses that are often unavailable through public markets. As the largest asset class within private markets, accounting for over 68% of the $17.1 trillion global private asset space*, PE offers a pathway to capitalize on growth opportunities in companies that remain privately held.

Institutional investors have long relied on private equity as a reliable driver of long-term portfolio performance. Over the past several decades, the asset class has consistently delivered strong returns—outpacing public equities in both U.S. and global markets. Now, as access expands, private equity is becoming an increasingly viable option for individual investors.

A Guide to Private Equity explains how the asset class works and why it continues to grow. We’ll cover key benefits, including higher return potential, improved risk-adjusted performance, and diversification from public market volatility. The guide concludes with practical tips on what to consider when selecting a private equity investment

*Preqin, as of September 2024.

Institutional investors, on average, allocate between 9% and 19% to private equity,