PitchBook's latest edition of Global PE & VC Fund Performance Report provides a qualitative review of the key macro trends, lending context to the granular datasets contained in PitchBook Benchmarks
, from the progressing cycle of cash flows to how the latest horizon internal rates of return (IRRs) are trending by asset class.
- Private market strategies had mixed returns in 1Q 2018. PE maintained the highest one-year rolling IRR of 18.9%, but this was down slightly from the prior period. Debt funds continued to lag other private market strategies on a one-year horizon but has better relative performance over the 10-year horizon.
- Recent PE vintages continue to show strong gains in both DPI and TVPI figures. 2009 and 2011 vintage funds realized the strongest relative gains, with DPI increasing 0.25x and 0.29x, respectively, for the year through 1Q 2018.
- VC net cash flows remain positive for another quarter. $36.3 billion of distributions and a relatively low contribution value in the quarter did a lot to drive this result, setting the stage for a seventh straight year of positive net cash flow.