The VentureCode

Is the number of patents filed an indicator of rate of innovation?

Number of Patents filed in US yearly 340,000+
Number of Patents filed globally 2,000,000+

USPTO patent filings are growing at an annual rate of 10%

Simply put the reason to invest in private equity is to improve return characteristics of an investment portfolio, while it potentially correlate to increased risk.

The long-term returns of private equity represent a premium to the performance of public equities.
This has been the case in the US for over 20 years and also in Europe, following an increase in the number of private equity funds, for over 10 years.

“The Yale Endowment states, ‘Private equity offers extremely attractive long-term risk-adjusted return characteristics…’”

Private equity has arrived as a major component of the alternative investment universe and is now broadly accepted as an established asset class within many institutional portfolios. Many investors with little or no existing allocation to private equity are now considering establishing or significantly expanding their private equity programs.

As nicely presented by EVCA, adding private equity to a balanced portfolio (bond and public securities) can reduce volatility and contribute to an overall improvement in risk profile.