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.
- 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.