PitchBook Benchmarks leverage a differentiated data collection process that results in one of the most robust fund performance datasets in the market. Further, we're able to provide visibility into the underlying funds and metrics used to construct each benchmark. Every edition includes a range of performance statistics across PE, VC, debt, real assets, fund-of-funds and secondaries strategies. In this edition, we feature a special section that examines fund performance persistence across both PE and VC.
Key Highlights from the Case Study:
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.
In addition to observing broad-based performance persistence, we found that the level of persistence rises as a firm raises additional fund for a particular strategy. When examining performance trends from the second to third funds in a Fund Family, we find that 43% of top-quartile PE funds are followed up by another top-quartile fund. That figure jumps to 55% for VC funds.
While we observed a considerable amount of persistence in the quartile performance from one fund to the next particularly on the ends of the distribution—regressions of net IRRs among subsequent funds in a Fund Family did not show a strong correlation in returns.
Note: The PE XLS and the PDF summary of this edition of PitchBook Benchmarks were updated on June 15, 2018, as a technical error was discovered in the calculation of the horizon IRRs.
Available for download:PDF reportExcel spreadsheet