Companies should be wary of investing their DB plans with buyout firms.
A new study by academics at Yale and Maastricht University shows that over the past 10 years, private equity returns after fees have lagged substantially those of the market at large. The study, prepared for the Financial Times, showed that the average private equity fund returned 4.5 percent, as opposed to 6.7 percent for the S&P 400 index of medium-sized firms.