Change in Quarterly Net Asset Value by Fund Type

by Gary Broughton

  • 09 Sep 2011
  • PE

Understanding how private equity fund valuations are changing gives an important insight into current market conditions within the private equity industry. Preqin currently holds fund level performance data for over 5,600 private equity funds including over 32,700 historic data points. Using this data, we have been able to analyse the quarterly change in net asset value (NAV) of different private equity asset classes as well as the private equity industry as a whole.

This analysis shows that Q4 2010 saw the most significant increases in fund valuations during the year, with buyout funds showing a 7.5% increase, private real estate funds experiencing a 7.3% increase, and portfolio valuations of venture funds increasing by 4.7%. During this quarter, the private equity industry as a whole saw a 5.8% increase in net asset value. Secondaries and funds of funds show similar trends, with increases in NAV of 3.8% and 3.3% during Q4 2010 respectively; however performance data for these asset classes is often lagged by one quarter due to the reporting schedule of the underlying funds.

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