PitchBook March 06, 2015
With more than a decade’s worth of global fund performance data to examine, our Global PE & VC Benchmarking & Fund Performance report analyzes IRRs, return multiples and so much more. Check out three takeaways below or in the video above.
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Record numbers for U.S. PE and VC distributions keep rolling in. U.S. PE numbers in particular are on pace to reach a record $280 billion in distributions, due in part to the massive totals in capital exited last year.
Lately, there has been talk among LPs of restructuring VC fund lifetimes, as few funds liquidate within the customary 10 years. With lackluster IRRs across all VC funds at 10-year horizons, they do have some evidence, yet the most recent VC horizon IRRs have been improving.
That improvement puts a positive note on overall VC fund performance relative to other strategies. Across all vintages from 2001 to 2012, PE and debt funds show reliably higher returns than VC, although performance equalizes somewhat after the 2008 to 2009 vintages.