Hmm...I'm not sure how to make use of your response, Will. You seem to be making the case that privately provided capital exists, and will continue to exist, whether or not supplying it is a good idea from an investment standpoint. Doubtless that's true, but it doesn't strike me as an interesting point; moreover, why include Ted Eliopoulos's quotation if it's not to suggest that investors should expect to get superior returns?
And there's the rub: despite lots of marketing-speak about the superiority of private equity as a way to invest, there has been precious little empirical evidence to support the idea. Do you think there is an empirical basis to support the idea that investors can EXPECT to receive higher net total returns by investing in private equity, by enough to compensate them fully for the additional risks?