PE continues to distribute increasing amounts of capital, while VC keeps calling
December 04, 2015
The alternative investment environment is fairly dynamic today. Valuations have reached record levels, and while investors have the dry powder to pursue transactions, a potential softening in the market is certainly a concern to be evaluated prior to deploying that capital. On the PE front, firms have looked to take advantage of heightened multiples to exit companies ready to go to market, leading to massive distributions back to LPs. According to our new Benchmarking & Fund Performance Report, PE firms distributed over $168 billion back to LPs in 1Q alone, a considerable amount given that it represents 36% of PE distributions for all of 2014.
In 1Q 2015, VCs distributed $19.7 billion back to their investors, also an impressive amount as that figure represents 35% of all VC distributions in 2014. Interestingly, in 1Q alone, VCs have called over half of the amount of capital called in all of 2014. In our latest Benchmarking Report, sponsored by R.R. Donnelley, we leverage the PitchBook Platform to explore recent PE and VC fund performance, including: