Along with our typical performance coverage, this edition of the Fund Performance Report includes a case study of net cashflows across multiple fund types, tracing their evolution by utilizing metrics such as percentage of capital called down over time and DPI multiples.
In addition, we wish to highlight once again our recently debuted the PitchBook Benchmarks, which include a more granular breakdown of performance metrics by fund strategy, vintage, location, and size. The
PitchBook Benchmarks includes all the data used for this performance report and much more for practical use in establishing specific benchmarks and goalposts for any private market strategy.
- On a one-year horizon, private equity funds reported a 19.1% IRR compared to just 3.1% for debt funds—the best- and worst-performing private capital strategies over this period, respectively. PE returns have been boosted by the bull market in equities, while debt markets have continued to be tilted in borrowers’ favor, which has led to relatively low rates and borrower-friendly terms for new lending.
• Capital is moving both to and from LPs at a record pace. Globally, net cashflows to LPs of PE funds totaled $60.6 billion through 1H 2017, on pace for a 35% increase over 2016 and the seventh consecutive year of positive cashflows.
• Capital is being called down by VC funds at a much greater level than nearly any other year in our sample, with LP contributions from 1H 2017 surpassing the full-year totals from 2009, 2010 and 2014.
Note: This report was updated on March 22, 2018, as there was an erroneously rounded figure for the one-year horizon IRR that should have read 19.1%, as opposed to 19.3%.