Michael F. Hoynes
American Booksellers Assn.
Tarrytown, N.Y. In "Private equity, public anger" (Finance, June 16), Mara Der Hovanesian asserts that investors in private-equity funds are "banging on the door to get out as hard as they once did to get in." On the contrary, most limited partners in private-equity, and specifically venture-capital funds, have the sophistication and financial savvy to realize that the asset class has a long-term horizon and outperforms the market over time.
Unrealized returns, whether they are positive or negative, are not meaningful. One cannot measure the performance of a venture fund until the final liquidity event occurs, which typically takes 7 to 10 years.
National Venture Capital Assn.