Private Equity: Viable Alternative Investment or Empty Promise?

Abstract

In a lively roundtable debate, members of the Brandes Institute Advisory Board (BIAB) and guest speaker Brad Case discussed the pros and cons of private equity and whether the investment class is a viable alternative.

While some Board members shared their successes, Case cited challenges in the structure of private equity funds and the credibility of their performance reporting. During the discussion, key considerations surfaced in support of private equity, balanced out by a number of key issues questioning its viability.

Ultimately, like any other investment, pros and cons should be weighed according to an investor’s long-term financial goals, risk tolerance and the probability of success.

Keywords: private equity, public equity, portfolio management, asset allocation

JEL Classification: G10, G11, G14, G15, G20, G22, G23, G30