View all insights
image

A Question of Performance

For its 21st Anniversary edition, Private Equity International asked CEPRES to run the numbers on PE’s performance over the last 21 years, and its findings should please our readers. According to analysis from the private markets data provider, the CEPRES global buyout funds index has outperformed the S&P 500 and the MSCI ACWI – which tracks a broad selection of large- and mid-cap stocks from 47 markets – every quarter in every year since 2001. 

The returns produced by buyout funds have, however, been more volatile than their public market equivalents, per the CEPRES analysis, which is perhaps surprising given that many LPs often cite a perceived lack of volatility as a reason for investing in the asset class. One of the strongest periods for buyout funds over the past 21 years was 2003 to 2007, with the largest single-month increase, 11.08 percent, coming in April 2003. 

CEPRES, which draws on a data set spanning around 11,000 funds and more than 107,000 PE-backed companies, also compared the performance of buyout funds with other alternative asset classes. It found that while buyouts consistently outperformed its index of real estate funds – apart from a brief period in 2004 – there was a solid stretch after the global financial crisis where private infrastructure outperformed buyouts. Infrastructure has produced the least volatile returns and clearly outperformed public equities benchmarks as well.

Continue reading on Private Equity International (opens in new window)

Administrators
Article
Brokers
Consultants
Dataset
Digital transformation
Due diligence
Fund of funds
Fund performance
Fundraising
General partners
Generating alpha
Investing trends
Investment data
Limited partners
Market performance
Market research
Placement agents
Portfolio insights
Portfolio management
Portfolio monitoring
Research reports
Risk management

Read next

image

Private Equity Exits Tumble to Decade-Long Low as Managers Hold Back

Private equity fund managers have sharply pulled back on sales of their portfolio companies this year, with exits from their strategies perhaps the most visible evidence of a weakening market that has seen declining valuations, slower fundraising and other flagging indicators.

image

Venture Managers Hit Fundraising Record, But Warning Signs Flash

New forecasting based on recent economic shocks predicts venture distributions to slow by 2024, deferring into later years, with the peak drop of 79% coming next year.

People looking at tablet

Comparing Infrastructure Returns Between the Private and Public Markets

Private markets face numerous intersecting headwinds: growing volatility, geopolitical uncertainty, inflation, rising interest rates and more. These events have led to large drops in market valuations of many startups and difficulties raising new capital in follow-on financing rounds.

Client Exclusives

Private credit: Spotlight on deals — the winners and losers & bounce back from the crisis

Read more
image

Navigating Private Debt: A Deep Dive into Historical Risk and Returns

Read more
image