8 
What Private Equity Investors Think They Do for the Companies They Buy
Harvard Business Review
JUNE 18, 2015
Furthermore, few PE investors explicitly use the capital asset price model (CAPM) to determine a cost of capital. Instead, PE investors typically target a 22% internal rate of return on their investments on average (with the vast majority of target rates of return between 20 and 25%), a return that appears to be above a CAPM-based rate. We gather career history data for the founders of all 76 private equity firms in our survey.
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