TMCnet News
High Level of Performance Persistence Exists Among Private Equity and Venture Capital FundsSEATTLE and NEW YORK and SAN FRANCISCO and LONDON, June 14, 2018 /PRNewswire/ -- PitchBook, the premier data provider for the private and public equity markets, today released fund performance data through 3Q 2017 from its stand-alone performance measurement product, PitchBook Benchmarks. The comprehensive performance data is designed to help limited partners (LPs) and general partners (GPs) better understand private market fund performance relative to broader asset classes and other PE and VC strategies. Since last quarter, PitchBook has added more than 140 private capital funds to the Benchmarks data set, which now includes nearly 4,000 private market funds. In this edition, PitchBook examines performance persistence across active PE and VC fund managers and finds strong performance persistence between funds, and that the level of persistence rises as a firm raises additional funds. In aggregate, funds that deliver top-quartile performance are followed by a top-quartile successor fund 39% and 34% of the time for PE and VC, respectively. The PitchBook Benchmarks PDF and Excel data packs are available for download here. "Both PE and VC funds show a clear performance persistence within fund families, especially towards the ends of the return distribution," said James Gelfer, senior analyst at PitchBook. "Our data also shows that the level outperformance persistence rises s a GP raises additional funds; however, we found similar findings in underperformance, indicating that LPs are granting too much flexibility to subpar GPs. Although there are caveats, our data seems to suggest LPs would be well-advised to consider past performance when evaluating future commitments." Key findings from the latest analysis of PitchBook Benchmarks, include:
For more information about PitchBook Benchmarks, click here. About PitchBook PitchBook Press Contact
View original content with multimedia:http://www.prnewswire.com/news-releases/high-level-of-performance-persistence-exists-among-private-equity-and-venture-capital-funds-300666224.html SOURCE PitchBook |