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Private Equity IRRs as of 31 December 2009

by Etienne Paresys

  • 25 Jun 2010
  • PE

The overall private equity horizon IRR for the one-year period to December 31st, 2009 stands at 13.8%, an improvement on the -9.2% posted at September 30th, 2009. All private equity strategies are now posting positive one-year returns as at Q4 2009. With a horizon IRR of 16.7%, buyout is posting the highest returns. Venture capital shows a one-year return of 5%, mezzanine 2.3% and funds of funds 0.2%.

Private equity three-year horizon IRRs are just above 0% for all fund types except mezzanine, which stands at 6.5%. Long-term returns remain strong, with private equity posting an annualized 17.5% over the five-year period. With a horizon IRR of 21.8%, buyout funds are posting the strongest returns over the five-year period.

Fund valuations and private equity performance have improved steadily since the second quarter of 2009. Private equity performance has still not reached the level seen prior to the financial crisis but is on a strong path to recovery.

For more information about private equity performance, please see how Preqin’s Performance Analyst can assist you.

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