Global Fund Performance Report (as of Q3 2020 with preliminary Q4 2020 data)

VC, PE continue to shine brightest in private fund performance

Preliminary data for the fourth quarter of 2020 reveals that, after a headwind-filled year, fund performance across the majority of private market strategies has recovered.

PitchBook's latest Global Fund Performance Report provides a clear picture of the changes across sectors, with a new quilt chart visualization that will be included in all of our quarterly benchmarks going forward.

Key takeaways
 

• PE funds registered a 13.3% return in Q3. As a result, PE fund appreciation has more than made up for pandemic-induced losses, thus underscoring how quickly the economy bounced back.

 

• VC's Q2 rebound in returns pushed higher in Q3. IRR for the quarter hit 12.4%—the highest figure since 2010—as investors returned to their usual dealmaking pace, with exits supported by a robust IPO market.

 

• Private debt saw a modest improvement in Q3. The liquidity offered by central bank bond-buying programs, combined with lower-than-expected default rates, drove a broad recovery in credit markets in H2 2020.