The main Private Markets asset classes – Private Equity, Private Credit, Private Infrastructure and Secondaries – have historically outperformed their public markets counterparts over the long term, although this is not a guide to the future.
Private Equity performance
Over the long term, Private Equity has historically outperformed its public market equivalents, although this is not a guide to the future. In the 20 years from 2005 to December 2025, annualised returns on Private Equity funds surpassed global listed equity funds by 6.5% a year – see chart below. Past performance is not a guide to the future.
Performance of Private Equity vs. Global Listed Equities
Dot-com bubble
Global Financial Crisis and Eurozone Debt Crisis
Covid-19 and interest rates / inflation shock
Source: Morningstar. Compares annualised performance of Private Equity Buyouts (excluding Venture and Growth Capital) versus IA Global Sector. Returns are in USD and thus for UK investors will be affected by currency fluctuations. Past performance is not a guide to the future. The time periods are Q3 2000 – Q4 2002 (Dot-com bubble); Q1 2008 – Q2 2009 (Global Financial Crisis); Q1 2011 – Q2 2012 (Eurozone Crisis); Q4 2019 – Q2 2020 (Covid-19); Q4 2021 – Q4 2022 (Interest Rates / Inflation shock).
Private Credit performance
Over the long term, Private Credit has historically outperformed its public market equivalents, although this is not a guide to the future. In the 20 years from 2005 to December 2025, annualised returns on Private Credit funds surpassed global high-yield bond funds by 3.8% a year – see chart below. Past performance is not a guide to the future.
Performance of Private Credit vs. Global Listed Bonds
Private Infrastructure performance
Over the long term, Private Infrastructure has historically outperformed its public market equivalents, although this is not a guide to the future. In the 15 years from 2010 to December 2025, annualised returns on Private Infrastructure funds surpassed global listed infrastructure funds by 2.7% a year – see chart below. Past performance is not a guide to the future.
Performance of Private Infrastructure vs. Global Listed Infrastructure
Secondaries performance
Over the long term, Secondaries have historically outperformed their public market equivalents, although this is not a guide to the future. In the 20 years from 2005 to December 2025, annualised returns on Secondaries funds surpassed global listed equity funds by 7.6% a year – see chart below. Past performance is not a guide to the future.