re: Private Equity investment. Anyone used PE to generate alpha?

Yo you know where to find that ALPHA?

ETA: ok felt like a dick… but 15%, give or take, should be the standard for the run the mill PE strategy.

Quoted volatility is generally quoted far lower because valuations are not calculated the same way as publicly traded markets, but obviously there is a vastly different liquidity profile vs the public markets. So relative volatility in PE is really only a number on paper.

For that illiquidity, you should require a higher return. “PE investing” is a broad statement, and there’s plenty of diversification you can aim for in that space. Different equity approaches/strategies, different vintages (commitment timing), industry/country, etc…

With equity market returns looking less attractive vs the last decade, bonds looking meager… a good PE and other sources of alternative return are worth considering.