Preqin Investor Network’s Blog takes a closer look at the industry from the institutional investor’s perspective.
Past performance track record of fund managers plays a key role in investment professionals’ pre-screening due diligence process, as it is shown to provide a good indication of future funds’ returns. With importance placed on the successful performance of past funds, Preqin Investor Network takes a closer look at the private equity, real estate and infrastructure managers currently in market with the best track records.
Preqin assigns quartile rankings to private equity funds based on both the multiple and IRR, taking into account the fund vintage, strategy and geographic focus.
Preqin Investor Network’s Consistent GPs feature, available to all accredited investment professionals free of charge, allows investment professionals to review a list of firms currently raising funds who have consistently had funds ranked in the 1st and 2nd quartiles. Data shows that of the 169 fund managers that have consistently raised funds ranking in the 1st and 2nd quartiles, 61 are currently seeking capital commitments.
When taking a closer look at the breakdown of these 61 fund managers raising capital, 26% focus primarily on buyout strategy, and 20% primarily manage real estate funds. The majority (72%) of these consistent performing fund managers are based in North America, followed by 7% of fund managers located in the UK.
Six private equity and real estate fund managers with funds in market have achieved top quartile rankings for all previous fundraises of the same fund type; Centennial Holdings, Industry Ventures, JBG Companies, OrbiMed Advisors, Sequoia Capital and Trilantic Capital Partners, which are all based in the US. Inflexion received the highest average quartile ranking for UK-based GPs, with an average quartile ranking of 1.25.
Log into Preqin Investor Network for complimentary access to market benchmarks across fund types, geographic focuses and vintages, as well as further details on the consistent GPs with funds in market.