CNBC analysis points out that, according to a report released in August, as of March this year, private equity funds' annualized returns over the past three and five years were 7.4% and 9.3% respectively, both lower than the S&P 500's 18.3% and 12% over the same periods. However, looking at a longer 25-year cycle, private equity funds delivered an annualized return of 12.8%, still outperforming the S&P 500's 10%. The article suggests that while private equity funds offer advantages such as long-term high return potential, leverage, and early-stage investment opportunities, they also come with risks like poor liquidity and high fees.