Median Returns for Private Equity Strategies

by Bronwyn Williams

  • 27 May 2011
  • PE

Preqin’s private equity benchmarks  are a resource for fund managers and investors looking to benchmark their private equity returns. Benchmark returns are calculated across the various strategies: all private equity, buyout, venture, fund of funds, distressed private equity, secondaries, infrastructure, real estate, mezzanine and early stage.

The highest median IRR is achieved by vintage 1997 venture funds, with a median return of 32.8%. For vintages following the dot-com crash, median venture fund IRRs have been considerably lower. The highest median net IRR achieved by buyout funds is for vintage 2001 funds, with a return of 26.5%. All the median returns for buyout funds of the vintages shown are in the black, with the lowest median IRR of 0.4% posted by vintage 2006 funds. The returns for vintages after 2006 are lower because they have been affected by the financial crisis. However, it is important to take into consideration that these funds are still in the early stages of their investment life cycles and their returns could improve as GPs add value to their investments.

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