Private Equity Performance Turns

June 10, 2002 ( - Private equity performance results for the final quarter of 2001 were -27.8%, slightly higher than the previous quarter, which lost -32.4%.

The result reverses the downward trend see for the previous four consecutive quarters, Thomson Venture Economics and the National Venture Capital Association announced.

Still, five-year and ten-year return figures were much healthier, with private equity funds increasing by 35.9% and 26.4% respectively.

Fund Types

In 2001:

  • seed VC funds lost 33.9%, but increased by 77.4% over a three-year period
  • balanced VC funds lost 24.3% over the year, but were up 43.5% over three years
  • later stage VC funds fell by 20% over the year, but rose 22.5% over three years
  • all venture funds were down 27.8%, but increased by 49.3% over the three year time horizon
  • all buyout funds were down 14.5%, but were up 0.5%
  • mezzanine funds dipped by 2.2%, but inched up 7.5% over three years
  • buyouts were down 13.4%, but were up 1% over the three-year period
  • all private equity funds were down by -18.5% over the year, but up by 13.2% over three years.

Venture Economics’ Private Equity Performance Index is calculated quarterly from Venture Economics’ Private Equity Performance Database, which tracks the performance of 1,400 US venture capital and buyout funds formed since 1969.

These statistics are calculated net to investors using both cash on cash returns and the unrealized net asset value of funds as reported by private equity fund managers.