Private Equity Horizon IRR by Fund Type

by Hayley Wong

  • 07 Oct 2011
  • PE

Using Preqin's cashflow data we have analyzed the returns generated by private equity funds as of 31st March 2011. Looking at the main private equity fund types- buyout, venture, fund of funds and mezzanine -the private equity horizon returns through 31 March 2011 for the one-, three- and five-year periods all show positive horizon IRRs returns.

For the one-year period buyout funds have had the highest return, 22.2%, while over the same period venture funds, funds of funds and mezzanine funds show returns of 15.8%, 14.8% and 14.4% respectively.

Over the three-year period the horizon returns are in the region of 1.0%-5.0%. Buyout funds have the highest returns for this period, with 4.5%, while venture funds show the lowest returns at 1.4%.

Over the five-year period buyout funds again show the highest return of 15.5%, while mezzanine funds show returns of 8.8%, funds of funds 8.4% and venture funds 4.5%.

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