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Median Net IRRs by Vintage Year: All Private Equity vs. Buyout – May 2015

by Lisa Parker

  • 06 May 2015

Preqin’s Performance Analyst online service tracks performance data for over 7,400 private equity vehicles, of which almost a quarter are buyout funds, indicative of their prominence in the private equity industry. Preqin tracks the performance of buyout funds by size and region focus. This analysis looks at the median net IRRs by vintage year of buyout vehicles compared to all private equity fund types.

As illustrated in the chart above, buyout vehicles with vintage years between 1996 and 2012 have mostly outperformed the private equity industry as a whole. The median net IRRs were identical for funds of vintage years 1996, 1998 and 2009. Buyout vehicles outperformed all private equity vehicles in 11 of the 17 vintage years examined. There is a notable difference between funds with vintage years 2000 to 2003, likely caused by the industry median being lowered by the exposure venture capital funds had to technology companies during the dot com crash. The only vintages where buyout vehicles achieved a median net IRR lower than the whole private equity industry were 1997, 2011 and 2012. As funds with vintage years 2011 and 2012 are still in the early stages of the funds’ life cycles, the net IRRs are likely to change over time, suggesting that buyout vehicles with these vintages could still generate a higher median net IRR in the future.

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