Using Preqin’s proprietary market benchmark data, we have analyzed the median net IRRs through Q4 2010 across the main private equity strategies: buyout, venture and real estate.
This shows that venture funds with a 1997 vintage year have achieved the highest median net IRR of 32.7%; however median returns for vintage 1999 and 2000 funds are much lower following the dot-com crash. Vintage 2008 venture funds are currently in the red showing a median IRR of -2.4%. Returns for buyout funds are at their highest for vintage 2001 funds with 29% and are in the black for all vintage years in this sample. Real estate funds suffered the most during the financial crisis and have the lowest IRRs for vintage years 2005-2008. It is important to note that funds with more recent vintage years are still in the early stages of their investment cycle and their returns could improve as fund managers add value to their investments.