Private real estate leads in Sharpe ratio, Bonaventure analysis shows
XLRE•Bonaventure’s analysis found private real estate had a 1.01 Sharpe ratio versus 0.55 for public equities, while public equities returned 10.6% annualized over 20 years through Q1 2026, compared with 6.3% for private real estate.
1. Risk-adjusted returns
Bonaventure’s asset-class analysis found private real estate delivered the highest risk-adjusted returns, with a Sharpe ratio of 1.01 versus 0.55 for public equities in data as of 2025. Public equities led long-term absolute performance, returning 10.6% annualized over 20 years through Q1 2026, compared with 6.3% for private real estate. The analysis noted that periodic property valuations smoothed reported volatility and that Sharpe ratios do not directly capture liquidity or financing risks.
