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Performance of Mezzanine Funds

by Bronwyn Williams

  • 21 May 2010
  • PE

Analyzing mezzanine funds in terms of median capital calls, distributions and unrealized portfolio investments shows the typical pattern of private equity funds, where older vintages have largely distributed their capital back to their investors with relatively small amounts of capital remaining in portfolio companies. More recent vintages show much lower proportion of capital returned to LPs with the majority of capital locked up in investments. As these vintages mature the proportion of capital distributed to investors will increase. Returns for vintages between 1997 and 2000 lie around 1.30x. Fund vintages of 2003 to 2008 have returns in the range of 1.00x to 1.20x the capital paid-in. Vintage 2009 funds have a significant amount of capital to investment with 4% of capital called.

More information on private equity performance is available on Preqin's Performance Analyst.

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