PRINT THIS PAGE The private equity premium puzzle29/05/2001. Source: University of Chicago. Professor Tobias J Moskowitz & Annette Vissing-Jorgensen 
 Returns to private equity are in some cases two to three percentage points lower than the returns on public equity, according to this report conducted at the University of Chicago GSB.
The study compares returns from both asset classes between 1989 and 1998. It concludes that a diversified portfolio of public equity offers a far more attractive risk-return trade-off than portfolios that include private equity.
Relevant sections include: section III, which provides a detailed analysis of returns to private equity; section IV, which examines the risk of investing in private equity; and section VI, the conclusion.
Click here to view the full report
Toby Moskowitz is an assistant professor of finance at the University of Chicago Graduate School of Business. tobias.moskowitz@gsb.uchicago.edu
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