Private Equity Firms a Gross of Fees Outperform

Is private equity a good investment? Jeffrey Hooke, Senior Lecturer at Johns Hopkins' Carey School of Business, claims that private equity has not been a lucrative investment for institutional investors such as pension funds or university endowments. Chicago Booth Professor Steven Kaplan, who has studied private equity for over 35 years, disagrees. Luigi and Bethany bring both Jeff and Steven on the show to debate this, and the evolution (or lack thereof) in reporting, transparency, and corporate governance in the private equity industry. What data and metrics should we look at when measuring private equity performance? How should we compare studies and analyses across time and different data sources? Moreover, does adding value to investors also necessarily mean adding value to society? Jeffery Hooke's new book "The Myth of Private Equity" is out now.