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 takeaways from the case study:
- PE managers have struggled to keep pace with the bull market in public equities. For each vintage from 2006 to 2015, the median PE fund has failed to produce a KS-PME higher than 1.00x, indicating underperformance relative to the S&P 500.
- The level of outperformance for top PE funds is in decline. While the top-decile PME level crested 2.00x for multiple vintages in late 1990s and early 2000s, it has averaged 1.34x for 2006 to 2015 vintages and hasn’t been above 1.50x since 2005.
- Even top-quartile VC funds rarely beat the market. In addition to the median PME being above 1.00x for only five vintages from 1997 to 2015, the top-quartile hurdle rate is below 1.00x for six of the 19 vintages.