We’re starting to get a clear picture of why PE firms have been so successful fundraising recently. As we detail in our upcoming 2Q 2014 Global PE & VC Benchmarking Report, to be released tomorrow, net cash flows from GPs to LPs were historically high in 2013, particularly for private equity.
Through the first three quarters of 2013, U.S.-based PE firms distributed $105 billion more to their investors than they called down for the year. On a net basis, that’s almost double what LPs received in all of 2012, and given the strong numbers for PE capital exited in 4Q 2013, LPs may end up receiving three times the amount of net gains than they did the year prior. Aggregate distributions through 3Q 2013 total $193.8 billion, not far off the record $233.4 billion reported in 2012. If the current pace were to hold, 2013 would replace 2012 in the record books.
Be sure to check tomorrow's newsletter for the report, which also includes details on performance metrics like IRRs, return multiples, quartiles and cash flows for PE and VC funds across several vintages. To check out a sneak preview of the report, click here.