Our Chief Co-investment Officer, Andrew Krei, recently spoke with Larry Light on trends in private equity stocks.
Smaller private equity stocks don’t tend to do as well as the KKR-Blackstone-Apollo triumvirate. Look at the S&P Private Equity Index, which has 80 constituents, to include the top three. Weighed down by the record of smaller players in this collection, the index’s loss last year was more painful (28%) than the leading three’s dip, and over five years the PE index logged just 9.7% annualized. PE stock performances “skew to the larger funds,” observes Andrew Krei, co–chief investment officer at Crescent Grove Advisors in Milwaukee.