Bringing transparency to the performance of private equity

by Etienne Paresys

  • 24 Jul 2009
  • PE

Private equity remains a very secretive industry lacking in transparency and information. Data on the industry has traditionally been scarce, with one of the most obscure areas being the performance of private equity funds.

Preqin aims to provide all the necessary performance information to both investors and fund managers that need accurate net return figures. We are the only place where private equity professionals can view performance data on an individual fund level, as well as view a manager’s overall performance, and compare these returns with comprehensive benchmarks.

Preqin’s Performance Analyst database, with net returns figures for more than 4,700 private equity funds worldwide, offers the most extensive database and is not comparable to any other service. We have performance information for around 44% of all funds of vintages 1990 to 2006. However, even this figure understates our true coverage; generally we have a greater proportion of information on the larger funds, so the money-weighted percentage of funds for which we hold performance data is 69%, over vintages 1990 to 2006. This means we have a very high and truly representative figure upon which to base benchmarks and average performance figures for the asset class. When focusing on funds above $1 billion, the proportion of funds with performance data is 78%, rising to 100% for funds over $10 billion.

For more information on private equity fund performance, please see how our Performance Anlayst and Performance Benmarks services services can help you.

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