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Private equity is risky, and there's no guarantee it will outperform the market. There can also be hefty fees involved. Private equity funds often use a "2 and 20" fee structure -- a 2% managementfee and a 20% cut of any profits. Directly investing in companies is another high-risk, high-reward venture.
CDPQ's own public equities portfolio saw its performance "driven by growth stocks, as well as by large positions in Quebec companies, which performed well." The private equity portfolio was affected by interest rate hikes as well as by an increase in financing costs, which affected certain privatecompanies.
In the first half of 2023, higher financing costs hurt the Caisse’s private-equity portfolio, which posted a return of 1.4 In the short term, the portfolio was constrained by higher financing costs, which influenced the performance of certain privatecompanies,” the pension fund said. per cent, far below its benchmark of 7.2
Just background, Barry, when I moved here five years ago this year in 2018, we had barely no relationships in North America. We launched our very first growth private equity strategy in 2017-2018, way before it has, as I said, become a must-have strategy for many managers and for many allocators. How do you look at those?
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