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Asian Private Equity – Rolling One-Year Horizon IRRs

by Gary Broughton

  • 18 May 2012
  • PE

The private equity industry in Asia has attracted a lot of attention from both LPs and fund managers alike in recent years and has developed into an important regional focus for private equity professionals. By using cash-flow data for over 60 private equity vehicles with a main geographic focus on Asia, Preqin has been able to generate rolling one-year horizon IRRs in order to gain an insight into the performance of the private equity industry in this region.

The one-year Asian horizon IRR stood at 43.4% in December 2007 and then fell each quarter until December 2008. One-year returns increased each quarter from this point, returning to positive territory at the end of 2009. In March 2010, one-year returns stood at 27.9% before declining during the subsequent two quarters. During each quarter from September 2010 to June 2011, one-year returns remained relatively stable; however it is noticeable that the one-year returns to the current quarter are down compared to the previous quarter, standing at 7.7% in September 2011 compared to 23.3% in June 2011.

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