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PE & VC Fund Performance Report (as of 3Q 2017)


PE & VC Fund Performance Report (as of 3Q 2017)

June 20, 2018

PE & VC Fund Performance Report (as of 3Q 2017)
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The PitchBook Global PE & VC Fund Performance Report provides expert analysis of the latest trends in private markets' fund performance. Our analysts pore through myriad data points on fund classes from buyout to secondaries to assess the health of the industry, providing multiple key insights gleaned from the slew of datasets.

Key highlights:

  • Across the trailing one-year horizon, PE has outperformed all other private capital asset classes every quarter since 1Q 2016, most recently posting a 17.5% one-year return through 3Q 2017. Aggregate distributions to LPs remain at historically elevated levels, but much of the recent performance is due to mark-to-market gains.
  • Despite the rampant rise in startup valuations in recent years, VC funds returned just 7.6% over the one-year horizon to 3Q 2017—the lowest of any private capital asset class. Many VC professionals have expressed concerns that paper gains, rather than successful exits, are driving recent performance. But the data shows that strong distributions, especially from older vintages, have largely driven recent performance improvements.
  • Performance persistence is observable in both PE and VC funds, with the highest level of persistence occurring at the ends of the return distribution. Funds that deliver top-quartile performance are followed by a top-quartile successor fund 39% and 34% of the time for PE and VC, respectively.