Average Change in Net Asset Value to June 2013

by Claire McNeil

  • 13 Jan 2014
  • PE

Analyzing average change in NAVs (net asset values) can provide insight into the performance of the private equity market as a whole. Preqin’s Performance Analyst data shows that the year to June 2013 saw the highest non-weighted and weighted average change in NAV of the last four quarters, 10.1% and 12.6% respectively. The weighted metric takes into consideration fund sizes; this allows larger funds to have more of an impact and provides a more realistic reflection of the private equity industry as a whole, hence the higher weighted figure here suggests that larger funds outperformed their smaller counterparts in this period.

In terms of the quarterly change in NAV for all private equity, every period has seen a positive change since Q3 2011. Q2 2013 saw a weighted change in NAV of 2.9% and a non-weighted change of 2.8%; thus larger funds performed marginally better than smaller funds in this quarter. The weighted metric has exceeded the non-weighted metric in every period from Q1 2012 to Q2 2013, apart from the Q2 2012; thus larger funds have typically performed slightly better than smaller funds during these time periods.

When broken down by fund type, venture capital saw the highest non-weighted percentage change in NAV, of 4.3%, in the same quarter in the previous year this was 2%. In Q2 2012, the greatest change in NAV was in real estate funds, at 2.3%, whereas in Q2 2013 real estate saw the second lowest quarter change in NAV, of 1.7%. Most of the fund types show an increase in fund valuation in each quarter, from Q1 2012 to Q2 2013, except for mezzanine and venture capital funds, which show decreases in Q3 2012 and mezzanine again in Q1 2013.

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