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Average Change in NAV from Q2 2012 to Q1 2013 - October 2013

by Claire McNeil

  • 11 Oct 2013
  • PE

Preqin currently holds transparent net-to-LP performance data for over 6,600 private equity funds across the main private equity fund strategies and geographic regions. Analyzing the change in NAV of private equity funds can provide useful insight into trends in the private equity industry as a whole, as well as enabling comparison of different private equity fund types.

Focusing upon June 2012 to March 2013, for private equity as a whole, the average yearly change in NAV has been positive in each quarter.  The largest non-weighted change in valuation is 9.2% seen in the year to September 2012; the largest weighted change in valuations is seen in December 2012, at 11.6%. The weighted change in NAV takes into consideration fund size; hence, larger funds have a greater impact on the average. In all periods, the weighted change exceeded the non-weighted change, apart from in the year to June 2012, implying that larger funds typically outperformed smaller funds in the period June 2012 to March 2013.

Examining the average quarterly change in NAV in terms of fund type shows that the highest changes in valuations are seen in Q4 2012 or Q1 2013 for each fund type, with the exception of secondaries, which sees the highest change in valuations in Q3 2012. Looking at the latest quarter, buyout and distressed private equity saw the greatest quarterly increase in valuations of all of the fund types, of 3.4% and 3.1% respectively. In contrast, mezzanine was the only fund type with a change in NAV in negative territory in the quarter, at -1.0%. Buyout has witnessed positive changes in NAV in each quarter, at 0.5% in Q2 2012, and hovering at or above the 3% mark in each quarter since.

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