With the exception of recent vintages (2005 and 2006), only two secondary funds of funds have produced IRRs in the red. Looking at the spread of the IRRs across the vintages, vintage 1999 funds have a wide range of returns, with a maximum IRR of 40% and minimum of -4%. Vintage 2002 funds, on the other hand, are clustered quite closely together, with a difference of only 15 percentage points between the maximum and minimum IRR.
For the period observed, vintage 2004 produced the highest IRR: 51%. Funds of a 2006 vintage are all currently posting negative IRRs, with the lowest reported IRR at -19%. There is no doubt that these funds have been affected by the credit crisis but they are still early in their investment cycles and their performance is likely to improve over time.
More information on private equity performance is available on Preqin's Performance Analyst.