Opinion

South African investors lose out on PE returns

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Private equity investments have not been embraced by South African retirement funds which have less than 1% of their portfolios invested in private equity. The low investment in private equity comes despite its 4 to 5% outperformance of equity investments and its ability to catalyse and develop new businesses and expand existing ones, while investing in schools, housing and power, all of which contribute to the South African economy.