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Quarterly Change in Net Asset Value from Q3 2009 to Q2 2010

by Hayley Wong

  • 04 Mar 2011
  • PE

Private equity net asset values (NAVs) increased in each quarter from Q3 2009 to Q2 2010, but the rate of increase was lower in each successive quarter. The weighted NAV, which takes into account fund size, increased by 0.6% over Q2 2010, and the non-weighted measure showed an increase of 1.8%. This suggests that the smaller funds in the sample saw more improvement in NAVs during the quarter than the larger funds.

When splitting out buyout funds into different size groups (using the classifications small, mid-market, large, and mega based on the size of total commitments), Preqin’s performance data shows that small buyout funds experienced an average increase in NAV of 1.4% during Q2 2010. Mid-market buyout funds showed an increase of 1.3%, large funds 1.4%, and mega funds -0.7%. The fall in average NAV for mega buyout funds accounts for the lower increase in the weighted NAV discussed above.

All private equity fund types analyzed (buyout, fund of funds, mezzanine, real estate, secondaries and venture) experienced increases in NAVs between Q3 2009 and Q2 2010 with the exception of real estate. Real estate NAVs fell significantly in Q4 2009 with some stabilization in the following quarters.

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