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PrEQIn Private Equity Quarterly Index: All Strategies – August 2013

by Claire McNeil

  • 19 Aug 2013
  • PE

Examining PrEQIn All Private Equity, Buyout, Venture Capital, Real Estate, Fund of Funds and Distressed Private Equity indices together with the S&P 500 rebased to 100 as of 31st December 2000 can provide insight into the performance of the private equity industry over the period as well as useful comparison of private equity against the S&P 500 and comparison of different fund types within the asset class.

Since the end of the dot com crash the PrEQIn All Private Equity index rose every quarter to a peak in December 2007. In the subsequent year private equity returns saw the impact of the financial crisis and fell sharply over the twelve months to December 2008. However, post Q4 2008, the asset class as a whole has experienced a strong and persistent recovery, with only one decrease in quarterly index returns in June 2011, resulting from the imminent prospect of Greek default at this time. This was quickly corrected next quarter, likely following on from investor confidence increasing as result of the EU bailout plan, US debt ceiling deal and Bank of England stimulus package. Each private equity index has since surpassed the levels of returns seen pre-crisis, apart from the Real Estate Index.

All PrEQIn Indices show an increase in the preliminary Q4 2012 figures. The PrEQIn All Private Equity Index saw a quarterly increase in Q4 2012 to 227.1 from 220.2 in Q3 2012; however, the largest increase was experienced by the PrEQIn Distressed Private Equity Index which climbed from 364.1 to 380.8 over the same time period. In comparison the S&P 500 saw a quarterly increase from 108.0 in Q3 2012 to 118.9 in Q4 2012.

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