We asked some of the leading figures from the institutions represented in the Global Investor 100 five questions on today’s private equity market. In the second of five articles, these executives share their thoughts on whether private equity will outperform public benchmarks in the coming years. You can find the other four articles in the index box to the right of this page and on the Global Investor 100 welcome page.

Will PE outperform public markets benchmarks over the next two years?


Merrick McKay, head of Europe PE, Aberdeen Standard Investments (18)

“We certainly expect PE to continue to outperform public market benchmarks over the long-term, but we find PE returns to be less volatile than public markets and a good diversifier. If public markets bounce back strongly, PE may not outperform in the short-term, but I’m confident the superior returns will revert over the medium to long term in any event.”


Vipon Ghai, global head of private equity and credit at Manulife Investment Management (26)

“Given the nature of our general account’s investment program, we evaluate the performance of private equity over an investment horizon that’s much longer than two years. Historically, that being said, private equity prices tend to lag – and demonstrate less volatility than – prices in the public markets, which change moment by moment. We’ve seen extreme price volatility in public equities since March, initially to the downside and more recently to the upside. Since they’re marked less frequently, prices of private equity holdings don’t typically suffer from day-to-day changes in sentiment.”


Steve Moseley, head of alternative investments, Alaska Permanent Fund Corporation (34)

“Yes, by at least 200bps.”

Daniel Winther, head of private equity and infrastructure, Skandia Mutual Life Insurance Company (60)

“Yes. Historically PE has had a higher overperformance in volatile markets. Majority ownership, strong governance, incentives and dry powder are fundamentally the drivers for PE to overperform also this time around.”



Michael Lindauer, global co-head of private equity, Allianz Capital Partners (15)

“Private equity with its active management approach should be in a good position to master the current coronavirus situation. Private equity funds should continue to outperform the stock markets by a meaningful margin.”


Spokesperson, Universities Superannuation Scheme (46)

“As a long-term investor, USS Investment Management views performance over a longer time horizon than two years. We believe that median private equity is likely to outperform public markets benchmarks over the medium term, but we expect that the dispersion of returns for private equity to be higher in this environment. We are comfortable with this given our in-house direct and fund capability.”