Analysis of Latin America Private Equity Fund Performance

by Hayley Wong

  • 10 Feb 2012
  • PE

Currently Preqin has private equity performance data for over 5,700 funds, of which there are 91 funds with a focus on Latin America.

Examining the net IRRs of those Latin America-focused funds with vintages 2005-2009, vintage 2005 vehicles produce the highest median net IRR, 19.9%, while vintage 2007 and 2008 private equity funds produce a median net IRR of 18.3% and 17.5% respectively. Funds of vintage 2006 return the lowest median net IRR of -0.6%. The top and bottom quartile boundary IRRs produced by funds with a vintage of 2005 are 41.1% and 14.0% respectively. Vintage 2009 private equity funds post a top quartile net IRR boundary of 13.9% and a bottom quartile net IRR boundary of 4.4%; however it is important to bear in mind that funds of this vintage are still investing and so the returns are likely to improve over time.

Examining the median called percentages for private equity funds with a focus on Latin America, the older vintages have over 90% of capital called, while vintage 2008 and 2009 vehicles each have median called up amounts of 79.6% and 24.4% respectively. The median distribution and remaining value lies at around 14.0% and 103.2%, respectively, for funds with a vintage between 2005 and 2009.

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