Middlemarch was recently quoted in an article in Pensions & Investments about why pension funds are lowering their return expectations for private equity at a time when officials are counting on the asset class to help their entire portfolios reach expected rates of return. The article references how return projections are falling, pushed down by a massive amount of capital flowing into the asset class. As a result, investors are cutting expected returns.
“Whenever the stock market performs well, investors wonder why they are bothering to lock up their money in private equity,” said Sasha Grutman, co-founding partner of merchant bank Middlemarch Partners LLC. “If you have a long-term perspective, there is absolutely a place for private equity,” Mr. Grutman said.
A link to the Pensions & Investments article can be found here.