By dividing up buyout funds into groupings by size, the data shows that funds classified as mega buyout funds posted the largest average increase in net asset value, 3.1%, over Q1 2010. The largest increase in NAV since the economic downturn for all size groups came in Q3 2009. Mega buyout funds were particularly affected by the economic downturn and to date have shown the largest percentage improvement as valuations have recovered. Large buyout funds showed an increase of 2.7% in fund valuation for March 2010, followed by small buyout funds with 2.6% and mid-sized funds with 1.5%. It is pertinent to take into account the level of debt associated with each fund size. Mega and large funds typically use more leverage for their investments and these fund types experienced more severe write downs as credit markets seized up. In contrast, small and mid-sized funds showed smaller variations in their net asset values as they typically use less debt in their transactions.
For more information on private equity performance, please see Preqin's Performance Analyst.