U.S. Venture Capital & Buyouts Post Strong Performance Thru Q2
The one year buyout returns saw a small decrease as well posting 27.3% for Q2 2006 compared to 28.3% for Q1 2006. Ten and twenty year buyout returns were relatively steady at 8.9% and 13.4% respectively.
Long term performance private equity performance remained steady and continued to outperform both the S&P 500 and NASDAQ for the ten and twenty year horizons.
|
Thomson
Financials' US Private Equity Performance Index (PEPI) |
|||||
|
Fund Type |
1 Yr |
3 Yr |
5 Yr |
10 Yr |
20 Yr |
|
Early/Seed VC |
11.20 |
5.40 |
-7.60 |
36.90 |
20.50 |
|
Balanced VC |
20.50 |
12.50 |
-0.20 |
17.00 |
14.50 |
|
Later Stage VC |
16.40 |
9.40 |
-1.10 |
9.50 |
13.70 |
|
All Venture |
16.20 |
9.00 |
-3.50 |
20.80 |
16.50 |
|
Small Buyouts |
12.10 |
9.60 |
3.70 |
7.10 |
25.90 |
|
Med Buyouts |
21.50 |
11.80 |
5.00 |
11.10 |
16.10 |
|
Large Buyouts |
26.80 |
15.80 |
6.30 |
8.60 |
12.50 |
|
Mega Buyouts |
28.50 |
17.50 |
7.20 |
8.90 |
11.60 |
|
All Buyouts |
27.30 |
16.30 |
6.60 |
8.90 |
13.40 |
|
Mezzanine |
9.70 |
5.30 |
2.60 |
6.20 |
8.70 |
|
All Private Equity |
22.50 |
13.40 |
3.60 |
11.40 |
14.20 |
|
NASDAQ |
5.6 |
10.2 |
0.0 |
6.2 |
11.7 |
|
S & P 500 |
6.6 |
9.2 |
0.7 |
6.6 |
9.79 |
| Source: Thomson Financial/National Venture Capital Association | |||||
*The Private Equity Performance Index is based on the latest quarterly statistics from Thomson Financials’ Private Equity Performance Database analyzing the cashflows and returns for over 1862 US venture capital and private equity partnerships with a capitalization of $679 billion. Sources are financial documents and schedules from Limited Partners investors and General Partners. All returns are calculated by Thomson Financial from the underlying financial cashflows. Returns are net to investors after management fees and carried interest. Buyout funds sizes are defined as the following: Small: 0-250 $Mil, Medium: 250-500 $Mil, Large: 500-1000 $Mil, Mega: 1 Bil +
Matt Marshal at VentureBeat and Dan Primack at PE Week provide some interesting perspective on these performance numbers.
