Consider the “vintage year”
Private equity funds are often categorized by “vintage year” or the year in which they were raised. Funds raised in a certain year may offer the benefit of riding the market cycle and sell when valuations are high and investing when valuations are low.
The fund returns can also vary a lot depending on the vintage year of a fund. Since it can be difficult to predict the market trends, you should diversify by manager type as well as the vintage year when allocating to private equity.