Pan-European Private Equity Performance Benchmarks Study 2012 (Invest Europe)

Summary

• The study analyzed 1,416 European private equity funds formed between 1980 and 2012 representing €393 billion in capital under management.p.4
• From inception to 31 December 2012, all independent private equity funds generated an overall net-pooled IRR of 9.26%.p.4
• Buyout funds achieved a net pooled IRR of 11.61%, while venture capital funds recorded a net pooled IRR of 1.27%.p.4
• Top quartile private equity funds delivered a net pooled IRR of 21.19%, with buyout funds at 20.96% and venture funds at 18.49%.p.4
• Top half private equity funds achieved a net pooled IRR of 13.40%, led by buyout funds at 15.07% and venture funds at 11.33%.p.4
• By fund size, buyout funds in the €250m to €500m bracket were the best performers since inception, recording an IRR of 19.91%.p.5

Key insights

1. The net-pooled IRR across 1,416 independent European private equity funds reached 9.26% from inception to 31 December 2012.p.4
2. Top quartile private equity performance remained consistent with a net pooled IRR of 21.19% compared to 21.21% in 2011.p.4
3. The 1995 vintage year delivered the highest net pooled IRR for all private equity at 43.79%.p.4
4. Venture capital funds in the up to €50m size bracket achieved the best performance since inception among venture funds with an IRR of 3.68%.p.5
5. Based on 5-year horizon IRRs, US buyouts led regional performance at 7.42%, followed by US venture at 3.61%, European buyouts at 2.48%, and European venture at -1.13%.p.5
6. Three-year horizon IRRs showed an increase across regions with US buyouts at 14.81%, European buyouts at 11.69%, US venture at 8.56%, and European venture at 2.04%.p.5
7. European private equity ranked second behind JP Morgan Euro Bonds (EMBI+) when evaluating public market comparators using 5-year horizon IRRs.p.5