Global Fund Performance Report (as of Q4 2020 with preliminary Q1 2021 data)

Private equity dominates in latest fund performance report
 
With COVID-19 upending the global economy, 2020 proved to be an unprecedented year for private market investors. But private equity and venture capital fund performance thrived nonetheless, according to PitchBook’s latest Global Fund Performance Report, which cites data through Q4 2020 and the early part of 2021.

Key takeaways
 

• Private equity funds recorded a one-year IRR horizon of 17.7%, marking its second highest total in the past decade, outpacing the S&P 500 and avoiding the same collapse it endured during the 2008 financial crisis.

 

• Venture capital funds peaked in Q4 2020, reaching a record IRR horizon of 14.9%. They continued the momentum into the new year, with a preliminary quarterly IRR of 13.3%. This was driven in large part by a healthy exit environment, as VCs looked to capitalize on frothy valuations.

 

• Bogged down by office closures, real estate funds trailed other private alternative asset classes and the broader public markets, continuing two-plus years of underperformance. But investment in warehouses and data centers provide some reason for optimism as people work and shop from home. 

This report was reuploaded on September 1, 2021, to correct data points in the chart on page 3.