Private Equity Does Not Really Outperform?

Should investors relish opportunities to invest in private equity? In his July 2025 paper entitled "The Private Equity Illusion: Revisiting Risks, Returns, and Realities", Simon Nocera analyzes the narrative that private equity is a superior asset class that delivers higher returns at lower risk than, and diversifies, public equity markets. Using investment industry data, academic research, consulting reports and empirical data focused on the last decade, he finds that: