Unspectacular Private Equity

Private equity is hot. Wealthy clients have to have it. Turns out, the average return from private equity "is quite unspectacular," says Josh Lerner, the Jacob H. Schiff professor of investment banking at Harvard Business School. Studies show private equity and venture capital, adjusted for risk, don't offer much more than a market return. Here's Schiff's article in today's special section in the Financial Times.