The recently launched 2014 Preqin Private Equity Performance Monitor includes analysis of the latest performance trends, league tables of top performing funds and firms, and net-to-LP returns for over 7,000 named funds of all types and geographies. The publication also includes analysis of the record high annual distributions received by LPs from their private equity investments in 2013. Using data from this publication and from Preqin’s Infrastructure Online service, this blog explores whether the same fortune was earned by LPs from their infrastructure partnership investments.
Throughout 2013, the total distributions returned to investors from their private equity portfolios reached a record high of $568bn. In comparison, narrowing this down to include only infrastructure partnership investments, the amount distributed to investors stands at $25bn, also the highest annual amount distributed from this fund type of all time, although capital investments remain high, at $33bn.
When comparing the two fund types, it is interesting to look at the relative change in the amount distributed by each in 2013 compared to 2012. In 2013, infrastructure funds distributed 20% more than in 2012, however, private equity funds in total distributed 49% more capital than they did in the previous year. As such, although infrastructure funds achieved the highest level of distributions of all time in 2013, the relative improvement compared to the previous year was not as great as it was for private equity funds in general.