8
Pension
Funds and Private Equity. Why? (3)
Conclusion: Investment in PE reduces instability and improves the
risk profile in an investment
portfolio.
Reduced risk via spread§In a balanced portfolio, introducing PE
investments spreads risk even further.
§Statistical data (source: Venture
Economic, Salomon, MSCI) show a low correlation between profits and return on
investments on Stock Exchanges and investments in non-listed companies
(investments made by VC funds).
§Small investments in PE Funds compared to overall cash available and spread across many Funds further reduce risk.