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Private Equity Horizon IRR as at Q1 2010

by Bronwyn Williams

  • 10 Sep 2010
  • PE

The overall private equity horizon IRR for the one-year period to March 31st, 2010 stands at 21.8%, an improvement on the 13.8% posted as at December 31st, 2009 and significantly better than the -9.2% as at Q3 2009 and the -27.6% as at Q4 2008.

The one-year returns to Q1 2010 for the Standard & Poor’s 500, MSCI Europe and MSCI Emerging Markets were 49.8%, 56.1% and 81.1% respectively. As with private equity, the public indices were all posting negative returns as of the first quarter of 2009 but have been improving since.

Over the three-year period, the private equity horizon IRR to March 31st, 2010 is -0.3%, while the figure for the five-year period stands at 16.8%.The three- and five-year returns for the Standard & Poor’s 500 were -4.2% and 1.9% respectively.

It should be noted that any comparisons of private equity returns with those of public markets need to be viewed with caution. As an illiquid asset, private equity investors are committed for a long period of time and horizon returns are therefore not as relevant as they are for listed equities.

For more information on private equity performance, please see Preqin's Performance Analyst Module. 

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