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Horizon IRR by Fund Type as at Q1 2010

by Etienne Paresys

  • 01 Oct 2010
  • PE

All private equity strategies posted positive one-year returns for the period ending 31 March 2010. With a horizon IRR of 25.5%, buyout posted the highest returns over the one-year period. In the previous year, buyout was amongst the worst performing private equity strategies, with one-year returns of -33.8% as of Q1 2009. As of the first quarter of 2010, venture capital shows a one-year return of 10.7%, fund of funds 10.5% and mezzanine 1.5%.

Three-year horizon IRRs are just above 0% for venture capital and just below 6% for mezzanine. Buyout and fund of funds have negative returns over the three-year period, with -0.9% and -1.7% respectively. Over the five-year period, all private equity is posting an annualized 16.8% and, with a horizon IRR of 21.8%, buyout funds are posting the strongest returns over this time frame.

For more information on private equity performance, please see Preqin's Performance Analyst.

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