1. Executive Summary The 2013 Preqin Private Equity Performance Monitor

Executive Summary - Sample Pages
1
PrEQIn Real
Estate Index
PrEQIn Fund of
Funds Index
PrEQIn Distressed
Private Equity
Index
S&P 500 Index
200
150
100
50
0
Fig. 1.2: All Private Equity Annual Amount Called-up, Distributed and Unrealized Value
2,500
500
450
2,000
400
350
Capital
Called
($bn)
1,500
300
250
1,000
200
150
500
100
Capital
Distributed
($bn)
Unrealized
Value ($bn)
2012
2011
2010
2009
2008
2007
2006
2005
0
2004
50
2003
By definition, private equity is a long-term
investment prospect. With investors locked
in for 10 years or longer, it is vital to look
at the performance of the industry over a
250
2002
The Long-Term Picture
PrEQIn Buyout
Index
PrEQIn Venture
Capital Index
300
2001
The PrEQIn Index, shown in Fig 1.1,
tracks the quarterly movements in the
performance of the private equity industry
since December 2000, illustrating the
impact of the financial downturn as well as
the subsequent rebound of private equity
returns. We see a decline start in 2007 in
the PrEQIn All Private Equity Index, and
a subsequent recovery starting in 2009.
Although a small dip can be seen at the
start of 2011, since then, the PrEQIn All
Private Equity Index has recovered steadily,
increasing quarter on quarter. Looking at
the indices of specific strategies shows that
Fig 1.2 shows the annual capital called and
distributed by all private equity funds, as
well as the unrealized value of their currently
held investments, since 2000. 2012 was
a very healthy year for private equitybacked exits, with an estimated $373bn
being returned to investors, although it did
not quite surpass 2011’s level of $392bn
distributed to investors. Healthy distribution
levels are essential to the private equity
industry, as distributions allow investors
to reinvest capital into new funds. During
2012, an estimated $472bn was called up
by fund managers, the highest level since
2007, meaning that many fund managers
are making new investments.
PrEQIn All Private
Equity Index
350
31-Dec-00
30-Jun-01
31-Dec-01
30-Jun-02
31-Dec-02
30-Jun-03
31-Dec-03
30-Jun-04
31-Dec-04
30-Jun-05
31-Dec-05
30-Jun-06
31-Dec-06
30-Jun-07
31-Dec-07
30-Jun-08
31-Dec-08
30-Jun-09
31-Dec-09
30-Jun-10
31-Dec-10
30-Jun-11
31-Dec-11
30-Jun-12
31-Dec-12
The private equity industry continually
faces challenges due to the uncertainty of
the world economy. The industry weathered
the financial crisis of 2007/2008, showing
recovery in 2009 and 2010. The escalation
of the European sovereign debt crisis of
2011 caused a small decline in growth but
2012 has seen continued recovery in the
private equity industry. In last year’s edition
of the Preqin Private Equity Performance
Monitor we asked the question: can private
equity investments provide returns to
investors in times of economic uncertainty?
Looking at the data, the answer is yes.
buyout and distressed private equity are
currently outperforming other fund types.
Additionally, the PrEQIn Real Estate Index
shows that the recovery of private equity
real estate has been a slower and more
gradual process compared to other fund
types.
400
2000
Continued Recovery
Index Returns
(Rebased to 100 as at 31-Dec-2000)
1. Executive Summary
Fig. 1.1: PrEQIn Index: All Strategies
Annual Amount Called/Distributed ($bn)
The 2013 Preqin Private Equity Performance Monitor
0
Vintage Year
© 2013 Preqin Ltd
Executive Summary - Sample Pages
The Challenge for Investors
While private equity investments can offer
long-term rewards to investors, there is a
significant spread between the performance
of individual funds, with a particularly large
2
30%
Fig 1.4 shows the median net IRRs after
fees and carry, along with the top and
bottom quartile boundaries, for all private
equity funds by vintage year, and provides
a representation of how significant the
difference can be between the performance
of top quartile funds (any fund with an IRR
above the top line) and bottom quartile
funds (any fund with an IRR below the
bottom line). For example, for vintage
2002 funds the gap between the top and
bottom quartile boundaries is a difference
of 18.0 percentage points. For vintage 2006
funds, vehicles at or above the top quartile
boundary have an IRR of 9.6% or above,
and the median net IRR is 5.0%. However,
vintage 2006 funds at or below the bottom
quartile IRR boundary all generate a
negative return of -0.6% or lower.
25%
All Private Equity
20%
Buyout
15%
Venture Capital
10%
Fund of Funds
Mezzanine
5%
0%
1 Year to Dec
2012
3 Years to Dec
2012
5 Years to Dec 10 Years to Dec
2012
2012
Fig. 1.4: All Private Equity - Median Net IRRs and Quartile Boundaries by Vintage Year
45%
For private equity investors, selecting
funds likely to perform well in the future
can be challenging, particularly given the
wide variety of private equity investment
opportunities available. Examining a fund
manager’s track record is one way for
investors to evaluate a fund’s potential
future success – despite the fact that past
performance is not a guarantee of future
success, there is clear evidence to suggest
that managers of top-tier funds are more
likely than their peers to continue to produce
top-performing funds in the future.
40%
Top Quartile
IRR Boundary
35%
30%
25%
Median IRR
20%
15%
Bottom
Quartile IRR
Boundary
10%
5%
0%
-5%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
For the 10 years to December 2012 the
annualized returns for all private equity
stand at 17.9%. Among the different fund
types, buyout funds have been performing
the best in this period, with an annualized
IRR of 24.3%. Returns between the different
types of funds vary significantly, with
mezzanine funds reporting an annualized
IRR of 10.6%, funds of funds 8.6% and
venture capital funds 5.4%.
Fig. 1.3: Private Equity Horizon IRRs as of 31 Dec 2012
Annualized Returns
Fig 1.3 shows the horizon IRRs for all
private equity, as well as specific fund
types, as of December 2012. Private equity
horizon returns provide a snapshot of the
performance of the private equity industry
over a set period of time, rather than looking
at the performance of an individual fund
over its lifetime. Using Preqin’s quarterly
cash flow data, we are able to calculate
horizon IRRs for various time horizons; the
calculation uses the net asset values at both
the beginning and the end of the period, and
takes into account all cash flows during the
period.
gulf between returns generated by the best
and worst performing funds.
Net IRR since Inception
10-year period. Although looking at shortand medium-term performance can be
interesting, the key question for investors is:
how do private equity investments perform
over the long term?
Vintage Year
© 2013 Preqin Ltd
Executive Summary - Sample Pages
As institutional investors look to identify,
evaluate and select top performing funds
for their private equity portfolios, the
2013 Preqin Private Equity Performance
Monitor can assist in this challenging task
by providing access to transparent and
accurate fund-by-fund returns data for over
6,300 private equity vehicles.
Consistent Performers
Finding
consistent
performing
fund
managers is no easy task, particularly in the
private equity industry, which is known for its
lack of transparency. Despite improvements
made in the level of disclosure across the
private equity space, it remains challenging
for investors and fund managers to access
the reliable, accurate and fully transparent
data necessary to effectively benchmark
funds.
Preqin’s tables of consistent performing
managers, featured in the 2013 Preqin
Private Equity Performance Monitor, can
3
help with this task. Each fund that Preqin
has performance for is assigned a quartile
ranking using Preqin’s Performance Analyst
online service, which contains performance
data for over 6,300 private equity funds
worldwide. These rankings are based upon
the peer group of each vehicle and take into
account vintage, strategy and region focus.
Both the multiple and IRR are used as key
indicators and equal emphasis is placed on
both metrics.
Fig 1.6 shows a list of the top six consistent
performing buyout fund managers and their
average quartile rank. Funds ranked in the
top quartile are given a score of one, funds
in the second quartile are scored a two,
and so on. The table is compiled using only
funds for which Preqin holds performance
data and has assigned a quartile ranking.
Additionally, 2011, 2012 and 2013 vintage
funds have been excluded as these funds
are too early in their fund lives to generate
meaningful IRRs. The list only includes fund
managers that have raised at least three
funds of a similar strategy.
Four buyout fund managers – Inflexion,
Veritas Capital, Vista Equity Partners and
Wynnchurch Capital Partners – have all of
their funds ranked in the top quartile, and
therefore have achieved the best possible
average quartile rank of 1.00. FIMI and
Waterland follow, each with a score of 1.25.
Extended lists of consistent performing fund
managers, broken out into various fund
types, are available in Chapter 3 of the
Performance Monitor.
Fig. 1.5: All Private Equity - Relationship between Predecessor and Successor Fund Quartiles
100%
90%
16%
19%
27%
70%
23%
27%
60%
50%
Second Quartile
Successor Fund
28%
31%
26%
40%
33%
Third Quartile
Successor Fund
25%
30%
20%
Top Quartile
Successor Fund
34%
80%
Proportion of Funds
Fig 1.5 highlights the relationship between
predecessor and successor fund quartiles,
showing that track record is an important
component of fund selection. It shows that
34% of fund managers with a top quartile
fund go on to manage a top quartile
successor fund, and 65% outperform the
median benchmark. In contrast, 36% of
bottom quartile fund managers remain
in this quartile with their next offering,
while a significant 61% underperform the
benchmark.
Bottom Quartile
Successor Fund
22%
35%
21%
10%
20%
14%
0%
Bottom Quartile
Predecessor
Fund
Third Quartile Second Quartile
Predecessor
Predecessor
Fund
Fund
Top Quartile
Predecessor
Fund
Fig. 1.6: Top Six Consistent Performing Buyout Fund Managers
Firm
Inflexion
Veritas Capital
Vista Equity
Partners
Wynnchurch
Capital Partners
FIMI
Waterland
UK
US
Overall Number
of Funds with
Quartile Ranking
3
3
US
3
3
0
1.00
US
3
3
0
1.00
Israel
Netherlands
4
4
3
3
1
1
1.25
1.25
Location
Number of
Number of
Funds in Top
Funds in
Quartile
Second Quartile
3
0
3
0
Average
Quartile
Rank
1.00
1.00
© 2013 Preqin Ltd
Executive Summary - Sample Pages
The 2013 Preqin Private Equity Performance
Monitor
We are proud to be launching the tenth
edition of the Performance Monitor,
celebrating a decade of providing net-to-LP
returns data to the private equity community.
This edition contains key metrics for over
6,300 funds, representing 70% of the total
capital raised by the industry.
This edition of the Performance Monitor
features the PrEQIn Private Equity
Quarterly Index, regional performance of
private equity funds, and 10-year horizon
IRRs, as well as analysis of private equity
performance by fund type, size and region.
In addition, the Monitor also includes risk/
return profiles of the different strategies,
performance benchmarks for the different
fund types, regions and vintage years, and
recent developments affecting performance,
as well as an analysis of listed private equity
performance, dry powder and assets under
management, and more.
Preqin gathers its performance information
directly from both fund managers and
investors, ensuring that the full spectrum
of private equity fund performance is
observed – be it positive or negative.
Additionally, multiple sources are used to
ensure accuracy. We hope that you find this
year’s edition of the Performance Monitor to
be a useful and effective tool and, as ever,
welcome any feedback that you may have.
4
© 2013 Preqin Ltd
The 2013 Preqin
Private Equity Performance Monitor
A comprehensive guide to private equity performance
Contents - Sample Pages
Contents
1.
Executive Summary
5
2.
Methodology
9
3.
Consistent Performing Fund Managers
13
12.
Top Performing Funds
13.
PrEQIn - Private Equity Quarterly Index
19
14.
Effects of Past Performance on Private Equity Fundraising
41
45
Effect of predecessor fund performance on time spent on road by
funds closed in 2010/11; effect of predecessor fund performance
on subsequent fundraise vs. initial fundraising target; effect of
predecessor fund performance on time spent on the road for funds
currently in market.
7.
Performance Data in a Global Context
15.
How Much Have Investors Gained Historically?
Private Equity Horizon IRRs
47
Change in Fund Valuations
Dry Powder and Assets under Management
Private equity assets under management; dry powder by region
focus; buyout dry powder by fund size; venture capital dry powder
by investment stage.
6
95
57
61
99
Overall Performance of Private Equity
101
Called-up capital, distributed capital and remaining value; median
net IRRs and quartile boundaries; money-weighted and pooled IRRs;
IRRs by geographic focus; fund IRR deviations from benchmark; cash
flows; J-curves; relationship between quartile ranking and manager
experience; relationship between predecessor and successor fund
quartiles.
53
18.
Buyout
105
Called-up capital, distributed capital and remaining value; median
net IRRs and quartile boundaries; money-weighted and pooled IRRs;
IRRs by fund size; fund IRR deviations from benchmark; cash flows;
J-curves; relationship between predecessor and successor fund
quartiles; fund performance listings.
19. Distressed Private Equity
Annual change in NAV; quarterly change in NAV for all private equity
and buyout by fund size; quarterly change in NAV by fund type.
11.
Data Coverage
Explanation of ratios and data used in the graphs.
17.
One-, three-, five- and ten-year horizon IRRs as of 31 December
2011; private equity horizon IRRs vs. public indices; performance of
private equity industry vs. MCSI World index.
10.
77
16. How to Interpret Private Equity Returns
Net LP gain by vintage year; horizon returns by asset class of public
pension funds; one-year returns to December 2011; private equity vs.
total investment portfolio.
9.
Market Benchmarks
Fund universe; Preqin performance coverage by type and region.
North America-focused funds; Europe-focused funds; Asia-focused
funds; Africa-, Latin America and Caribbean-, Australasia- and Middle
East and Israel-focused funds.
8.
75
All Private Equity: All Regions; US; Europe
Buyout: All Regions; US; Europe; by fund size
Fund of Funds
Mezzanine
Infrastructure
Distressed Private Equity
Growth
Real Estate
Venture Capital: All Regions; US; Europe; Early Stage
Secondaries
PrEQIn Quarterly Private Equity Index: All Strategies; Buyout by fund
size; Venture Capital by investment stage; fund quartile indices.
6.
Performance of Listed Private Equity
Overview of listed private equity; share prices; discounts and
premiums to net asset value; performance listings.
Rankings of top performing funds by fund type and vintage year.
5.
69
Risk and return by fund strategy; IRR deviation from benchmark; risk
and return for buyout, distressed private equity, real estate, venture
capital, fund of funds and secondaries.
Buyout managers, venture managers and other fund managers that
have consistently produced top quartile returns.
4.
Risk and Investment Selection
65
141
Called-up capital, distributed capital and remaining value; median
net IRRs and quartile boundaries; IRR dispersion; distributions to
paid-in capital ratios – median and quartile boundaries; residual
value to paid-in capital ratios – median and quartile boundaries; fund
performance listings.
© 2013 Preqin Ltd
Contents - Sample Pages
20.
Fund of Funds
149
Called-up capital, distributed capital and remaining value; median net
IRRs and quartile boundaries; fund IRR deviations from benchmark;
cash flows; J-curves; relationship between predecessor and
successor fund quartiles; fund performance listings.
21. Growth
28.
Index
281
Firm Index
Figure Index
169
29.
Glossary
307
30.
Performance Analyst Online
313
Called-up capital, distributed capital and remaining value;
median net IRRs and quartile boundaries; median multiples and
quartile boundaries; IRR dispersion; money-weighted IRRs; fund
performance listings.
22. Infrastructure
177
Called-up capital, distributed capital and remaining value; minimum,
median and maximum IRRs; median multiples and quartile
boundaries; fund performance listings.
23.
Mezzanine
183
Called-up capital, distributed capital and remaining value; median net
IRRs and quartile boundaries; fund IRR deviations from benchmark;
cash flows; IRR dispersion; fund performance listings.
24.
Real Estate
191
Called-up capital, distributed capital and remaining value; median net
IRRs and quartile boundaries; IRR dispersion; fund IRR deviations
from benchmark; value added vs. opportunistic multiples; cash flows;
relationship between quartile ranking and manager experience;
relationship between predecessor and successor fund quartiles; fund
performance listings.
25.
Secondaries
219
Called-up capital, distributed capital and remaining value; median
net IRRs and quartile boundaries; money-weighted IRRs; cash flows;
IRR dispersion; fund performance listings.
26. Venture Capital
225
Called-up capital, distributed capital and remaining value; median
net IRRs and quartile boundaries; money-weighted and pooled
IRRs; early stage vs. other venture IRRs; healthcare vs. IT IRRs;
fund IRR deviations from benchmark; cash flows; J-curves;
relationship between quartile ranking and manager experience;
relationship between predecessor and successor fund quartiles; fund
performance listings.
27.
Other Fund Types Performance Listings
271
Balanced; co-investment; direct secondaries; natural resources;
timber
7
© 2013 Preqin Ltd
Methodology - Sample Pages
2. Methodology
The content of the 2013 Preqin Private
Equity Performance Monitor is focused on
the performance of private equity funds
available to institutional investors and, as
a result, excludes direct investments in
unlisted corporate securities.
The fund-level performance data and all
related analysis in the Monitor is taken
from Preqin’s Performance Analyst online
service, the world’s most extensive
and transparent source of private
equity performance. Launched in 2003,
Performance Analyst initially held data for
1,086 funds. This figure has since grown
substantially and, at present, Performance
Analyst holds fund-level data for 6,300
funds, representing a 5% increase from
the previous year. In terms of total capital
raised, Performance Analyst contains data
for over 70% of all funds raised historically.
Subscribers to Performance Analyst will be
able to view all of the data contained within
the Monitor online and obtain fund level
performance data updated on a regular
basis. Further information can be found at:
www.preqin.com/pa.
Preqin reports fund-level performance
data which is representative of the investor
experience of each fund. Therefore, all
the figures presented within the Monitor
8
show the net position to the investor, and
all returns information is based on the
institutional investor’s position before tax,
but after the GP’s managed and carried
fees have been deducted.
Performance figures held by Preqin are
obtained via various sources and via varying
means. The majority of performance figures
are attributed to institutional investors and
are obtained via Freedom of Information
Act (FOIA) requests; these requests include
CalPERS, Washington State Investment
Board, and Florida State Board of
Administration, among many others, both in
the US and the UK. There are currently over
350 public pension funds and endowments
that are contributing performance figures to
Preqin.
In addition to obtaining performance
figures via FOIA requests, Preqin also
receives performance data directly from
GPs. As a significant proportion of our
online subscribers consist of prospective
investors viewing performance figures on a
fund level, GPs recognize the importance
of providing the most accurate and
recent data, consistent with our net-to-LP
performance metrics definitions, to ensure
the funds are represented both accurately
and in line with our methodologies.
Our wide range of data sources and our
extensive research program allows us
to verify data for funds on an individual
basis, ensuring a high level of confidence
in the accuracy of the data held. Preqin
greatly appreciates GPs contributing fund
performance data; therefore, we are happy
to offer those GPs complimentary access
to our Performance Benchmark module
within Performance Analyst, in addition
to discounted access to the full version of
Performance Analyst. Should you require
further information, or wish to contribute
performance data, please contact us or visit
our website at www.preqin.com/pa.
Preqin acknowledges the importance of
GP feedback on each fund. Hence, prior to
the release of the Monitor, we invited GPs
to comment and amend their individual
fund performance, in order to ensure that
the data included within this publication
is accurate and up to date. This process
took place during June 2013, although we
are still happy to receive any additional
feedback, and this will be incorporated onto
our database once received.
The date to which the performance figures
relate to is provided in the fund listings and
is an important consideration for readers
in order to correctly interpret the data.
The Monitor shows the most up-to-date
information at the time of going to press
in July 2013. The majority of the data
presented in this book is as of the fourth
quarter of 2012 or the first quarter of 2013.
On occasion, the data that is older than this
will mostly relate to funds with more mature
vintages that have already distributed the
majority of their capital back to the investors
and hence the data is not expected to
change significantly.
In order to ensure the most appropriate
fund-level comparisons are conducted,
percentages have been used to represent
all performance metrics. The following chart
gives a representation of performance
metrics displayed in the fund listings
section of the Monitor. “Called (%)” refers
to the ratio of capital called at the specified
date against the total amount committed
to the fund. “Distributed (%) DPI” refers to
the amount received by the investors as a
percentage of the paid-in capital to date.
The “Res. Value (%) RVPI” percentage
© 2013 Preqin Ltd
Methodology - Sample Pages
measures the residual value of the portfolio
expressed as a percentage of paid-in
capital to date. The multiple is the sum
of the distribution and the residual value
figures, expressed as a times factor of the
total capital called to date. Finally, Preqin
defines the vintage year as the year in
which the first investment was made from
the perspective of the investor (i.e. the year
of the first capital call to LPs for investment).
Preqin generates benchmarks for all the
main performance metrics – called, DPI,
RVPI, multiple and IRR – using the median,
average, pooled or money-weighted value.
However, due to the space limitation within
the Monitor, the Monitor only displays
the median IRR benchmark figures. All
benchmark figures generated by Preqin are
available to subscribers of Performance
Analyst, which also gives the user the
option of creating custom benchmarks from
their individual user-defined fund universe.
Preqin benchmark data is transparent and
allows subscribers to view the constituent
funds.
which are generated against the private
equity industry in its entirety.
The 2013 Preqin Private Equity Performance
Monitor aims to conduct analysis and
provide insight into all private equity types
from many different geographic regions.
Preqin uses the term of “private equity”
to denote a variety of fund types: buyout,
venture capital, mezzanine, distressed debt,
special situations, turnaround, real estate,
infrastructure, natural resources, balanced,
secondaries and fund of funds. Additional
notes regarding our terminologies and
methodologies can be found on our website
at www.preqin.com and should readers of
the Monitor have any further questions,
they are welcome to contact us.
Preqin Ltd.
July 2013
Additionally, Preqin generates quartile
rankings for individual funds. Each fund
universe constitutes funds with similar
fund types, geographies and vintage
years, enabling the quartile rankings to
be assigned using a combination of both
the IRR and multiple rankings of each
constituent fund, with equal weights being
placed on each of the IRR and multiple. In
instances where the sample size is small,
the funds are assigned quartile rankings
9
© 2013 Preqin Ltd
Methodology - Sample Pages
2. Distribution (%)
Distributions received to date as a
percentage of called capital, e.g. an
LP with a $1mn commitment has
received $292,500 – this is 32.5% of
the $900,000 called.
1. Called (%)
Percentage of LP’s commitment
contributed to date, e.g. an LP
with a $1mn commitment will have
paid in $900,000 to date.
6. Benchmark IRR:
The median IRR for the relevant peer group. We
have specific benchmarks for buyout, venture
capital, early stage, funds of funds, real estate and
mezzanine funds. Funds of a different type are
benchmarked against “All Private Equity”, e.g. in
this case vintage 2005 US buyout funds.
8. Date Reported:
10. Fund Specifics:
This is the ‘as at date’ for the valuations
and performance, e.g. in this case the
data is valid as of 31 Dec 2012.
Fund size is the total commitment received by the fund –
vintage and region focus are used for benchmarking. e.g. In this case, the benchmark is 2005 US
buyout funds
Firm Name
Mega Capital Partners
Fund
Vintage
Fund Size
(mn)
Region
Focus
Called
(%)
Distributed
(%) DPI
Res. Value
(%) RVPI
Net Multiple
(X)
Net IRR
(%)
Benchmark
IRR (%)
Quartile
Date Reported
Mega Fund I
2005
100 USD
US
90.0
32.5
105.1
1.38
8.0
8.0
2
31-Dec-12
Mega Fund II
2006
50 USD
US
60.0
29.7
52.7
0.82
-6.5
4.0
4
31-Dec-12
Example Fund I
2002
500 USD
Europe
100.0
219.0
36.3
2.55
46.4
28.1
1
31-Dec-12
Example Fund II
2005
700 USD
Europe
90.0
13.9
112.4
1.26
10.3
10.3
3
31-Dec-12
Example Capital Partners
9. Firm Name/Fund:
The name of the fund manager and
their corresponding fund.
3. Value
7. Quartile Ranking:
Valuation of unrealized investments
as percentage of called capital, e.g.
an LP with a $1mn commitment has
unrealized investment valued at
$945,900 – which is 112.4% of the
$900,000 called.
This shows which quartile of the
relevant peer group the fund falls into.
We put equal weight on the IRR and
value multiple, e.g. this fund is a third
quartile fund.
5. Net IRR:
4. Multiple:
The net IRR earned by the LP to date
after fees and carry, e.g. in this case
Distributions plus unrealized value, 10.3%, counting both distributions and
e.g. in this case 1.26 – which is
unrealized value.
(13.9+112.4) / 100
10
© 2013 Preqin Ltd
Top Performing Funds - Sample Pages
Fig. 4.16: Top 10 Best Performing Mezzanine Funds (Vintage 2001 - 2005)
Rank
Type
Region Focus
2001
Fund Size
(mn)
1,172 USD
Mezzanine
North America
Called
(%)
101.9
Net IRR
(%)
33.8
Date
Reported
31-Dec-12
2003
223 USD
Mezzanine
North America
97.8
179.5
10.7
1.90
26.0
31-Dec-12
2001
2002
300 USD
281 EUR
Mezzanine
Mezzanine
North America
Europe
85.3
79.5
150.2
157.4
0.3
0.0
1.50
1.57
20.1
16.5
31-Dec-12
31-Mar-13
2003
668 EUR
Mezzanine
Europe
99.7
126.1
43.1
1.69
14.0
31-Mar-13
2005
500 USD
Mezzanine
Asia
87.5
69.9
117.3
1.87
14.0
31-Mar-13
2005
123 USD
Mezzanine
North America
122.8
121.2
56.9
1.78
13.2
31-Dec-12
2005
150 USD
Mezzanine
North America
75.0
70.0
115.0
1.85
13.0
31-Mar-13
Stonehenge Partners
2002
200 USD
Mezzanine
North America
91.6
129.5
4.5
1.34
11.7
31-Dec-12
Audax Mezzanine
2002
438 USD
Mezzanine
North America
100.0
129.9
8.6
1.38
11.6
31-Dec-12
Vintage
Fund Size
(mn)
Type
Region Focus
Called
(%)
Net IRR
(%)
Date
Reported
2008
115 EUR
Mezzanine
Europe
96.1
167.8
22.7
1.91
27.0
31-Mar-13
2007
160 USD
Mezzanine
North America
89.0
68.0
88.0
1.56
20.0
30-Sep-12
GSO Capital Partners
2008
2,000 USD
Mezzanine
North America
92.9
92.1
84.8
1.77
18.8
31-Mar-13
CapitalSpring
Park Square Capital
Partners
Centerfield Capital
Partners
Contemporary
Healthcare Capital
2010
150 USD
Mezzanine
North America
96.4
32.4
109.2
1.42
18.6
31-Mar-13
2010
850 EUR
Mezzanine
Europe
68.1
14.8
105.5
1.20
17.6
31-Dec-12
2007
116 USD
Mezzanine
North America
93.9
56.9
82.2
1.39
16.4
31-Mar-13
2007
210 USD
Mezzanine
North America
100.0
n/a
n/a
n/a
15.7
31-Mar-13
Sankaty Advisors
2010
904 USD
Mezzanine
North America
70.0
35.4
86.0
1.21
15.6
31-Mar-13
2009
729 USD
Mezzanine
North America
104.8
32.1
93.9
1.3
15.0
30-Sep-12
2009
312 USD
Mezzanine
North America
64.9
46.0
95.2
1.41
14.4
31-Dec-12
Fund
Firm
1
TCW / Crescent Mezzanine III
2
Falcon Mezzanine Partners
3
4
Gleacher Mezzanine Fund
MezzVest I
5
ICG Mezzanine Fund 2003
6
Intermediate Capital Asia
Pacific Mezzanine Fund 2005
7
VSS Mezzanine Partners
8
CapX Fund III
Stonehenge Mezzanine
Opportunities
Audax Mezzanine Fund
Crescent Capital Group
Falcon Investment
Advisors
Arrowhead Mezzanine
MezzVest
Intermediate Capital
Group
Intermediate Capital
Group
Veronis Suhler
Stevenson
CapX Partners
9
10
Vintage
Distributed Value (%) Multiple
(%) DPI
RVPI
(X)
201.7
7.0
2.09
Fig. 4.17: Top 10 Best Performing Mezzanine Funds (Vintage 2006 - 2010)
Rank
Fund
Firm
Intermediate Capital
Group
Chatham Capital
4
ICG Minority Partners Fund
2008
Chatham Investment Fund III
GSO Capital Opportunities
Fund
Franchise Capital Partners III
5
Park Square Capital Partners II
6
Centerfield Capital Partners II
1
2
3
7
8
11
Contemporary Healthcare
Capital I
Sankaty Middle Market
Opportunities Fund I
9
Falcon Strategic Partners III
10
VSS Structured Capital II
Falcon Investment
Advisors
Veronis Suhler
Stevenson
Distributed Value (%) Multiple
(%) DPI
RVPI
(X)
© 2013 Preqin Ltd
Consistent Performing Fund Managers - Sample Pages
Consistent Performing Buyout Fund Managers*
Firm
Inflexion
Veritas Capital
Vista Equity Partners
Wynnchurch Capital Partners
FIMI
Waterland
ACON Investments
Altor
American Securities
Auctus Management
Harwood Private Equity
Industrial Growth Partners
Wellspring Capital Management
Archer Capital
Morgan Stanley Global Private Equity
Pacific Equity Partners
Berkshire Partners
Olympus Partners
Leonard Green & Partners
Lovell Minnick Partners
ABRY Partners
Apollo Global Management
Ares Management
AXA Private Equity
Endeavour Capital
ISIS Equity Partners
Morgan Stanley Private Equity Asia
Sterling Group
Trilantic Capital Partners
Gryphon Investors
Littlejohn & Co.
TA Associates
Thoma Bravo
CVC Capital Partners
BC Partners
Catterton Partners
Groupe Alpha
Nordic Capital
Quadrant Private Equity
Hellman & Friedman
GTCR Golder Rauner
Advent International
12
Location
UK
US
US
US
Israel
Netherlands
US
Sweden
US
Germany
UK
US
US
Australia
US
Australia
US
US
US
US
US
US
US
France
US
UK
Hong Kong
US
UK
US
US
US
US
UK
UK
US
Luxembourg
Sweden
Australia
US
US
US
Overall Number of Funds
with Quartile Ranking
3
3
3
3
4
4
3
3
3
3
3
3
3
5
5
5
7
4
5
5
6
6
3
6
3
3
3
3
3
4
4
12
4
9
5
5
5
5
5
6
8
9
Number of Funds in Top
Quartile
3
3
3
3
3
3
2
2
2
2
2
2
2
3
3
4
5
3
2
3
3
2
2
3
2
1
2
2
1
2
2
7
2
4
2
2
2
2
3
3
3
4
* Based on a universe of 168 firms and 776 funds fulfilling the selection criteria
Number of Funds in
Second Quartile
0
0
0
0
1
1
1
1
1
1
1
1
1
2
2
0
1
0
3
1
2
4
0
2
0
2
0
0
2
1
1
2
1
4
2
2
2
2
0
1
4
3
Average Quartile Rank
1.00
1.00
1.00
1.00
1.25
1.25
1.33
1.33
1.33
1.33
1.33
1.33
1.33
1.40
1.40
1.40
1.43
1.50
1.60
1.60
1.67
1.67
1.67
1.67
1.67
1.67
1.67
1.67
1.67
1.75
1.75
1.75
1.75
1.78
1.80
1.80
1.80
1.80
1.80
1.83
1.88
1.89
© 2013 Preqin Ltd
PrEQIn - Private Equity Index - Sample Pages
13
250
PrEQIn Real
Estate Index
PrEQIn Fund of
Funds Index
PrEQIn Distressed
Private Equity
Index
S&P 500 Index
200
150
100
0
31-Dec-00
30-Jun-01
31-Dec-01
30-Jun-02
31-Dec-02
30-Jun-03
31-Dec-03
30-Jun-04
31-Dec-04
30-Jun-05
31-Dec-05
30-Jun-06
31-Dec-06
30-Jun-07
31-Dec-07
30-Jun-08
31-Dec-08
30-Jun-09
31-Dec-09
30-Jun-10
31-Dec-10
30-Jun-11
31-Dec-11
30-Jun-12
31-Dec-12
50
Fig. 5.2: PrEQIn Private Equity Index: All Private Equity, Buyout and Venture Capital vs. S&P 500
140
120
PrEQIn All
Private Equity
Index
100
80
PrEQIn Buyout
Index
60
31-Dec-12
30-Jun-12
30-Sep-12
31-Mar-12
31-Dec-11
30-Jun-11
30-Sep-11
31-Mar-11
31-Dec-10
30-Jun-10
30-Sep-10
31-Mar-10
31-Dec-09
0
30-Jun-09
S&P 500
30-Sep-09
20
31-Mar-09
PrEQIn Venture
Capital Index
31-Dec-08
40
30-Jun-08
These returns are then combined to form
an index with the starting value of 100
PrEQIn Buyout
Index
PrEQIn Venture
Capital Index
300
30-Sep-08
Percentage change in quarter = [(NAV
at end of quarter + distributions during
quarter)/(NAV at start of quarter + call-ups
during quarter)] – 1
Fig. 5.1 shows the PrEQIn All Private
Equity, Buyout, Venture Capital, Real
Estate, Fund of Funds and Distressed
Private Equity Indices together with the S&P
500 rebased to 100 as of 31st December
2000. Examining these indices provides
an insight into the performance of the main
private equity fund types in comparison to
each other and to the industry as a whole.
The PrEQIn All Private Equity Index shows
an initial decline following the dot-com
crash in the early 2000s. The performance
of the industry subsequently improved
until December 2007, when the industry
experienced a decrease in performance
PrEQIn All Private
Equity Index
350
31-Mar-08
The Index is created using the following
calculation:
PrEQIn Private Equity Quarterly Index: All
Strategies
400
31-Dec-07
The PrEQIn Private Equity Quarterly Index
draws on information taken from Preqin’s
Performance Analyst product. It is a
money-weighted index that uses fund-level
cash flow transactions and net asset values
for over 5,000 individual private equity
partnerships – these funds have raised
over $3.5tn in aggregate capital.
as of 31st December 2000. In addition to
an overall private equity index, we have
calculated indices for the main private
equity fund strategies, as well as buyout
funds by fund size, venture capital funds
by investment stage and private equity
by performance quartile ranking, allowing
investors to analyze and compare different
parts of their private equity portfolios. At this
time, the figures for Q2 2012 are finalized;
however, Q3 2012 and Q4 2012 figures are
preliminary and subject to change.
Index Returns
(Rebased to 100 as at 31-Dec-2000)
Assessing the performance of an
investment portfolio is an important and
challenging task for an investor, and
many different metrics are required when
constructing and maintaining an effective
private equity program. The PrEQIn Private
Equity Quarterly Index is the first index
covering the whole private equity industry,
allowing investors to compare the returns
from their private equity portfolios to those
from other asset classes.
Fig. 5.1: PrEQIn Index: All Strategies
Index Returns
(Rebased to 100 as of 31-Dec-2007)
5. PrEQIn - Private Equity Index
© 2013 Preqin Ltd
How Much Have Investors Gained Historically - Sample Pages
Fig. 8.1: LP Commitments to Private Equity by Vintage Year
800
14
669
414
400
311
300
263
200
203
139 148
2012
2011
2010
2009
2008
2007
2005
2004
2003
2002
2001
2000
1999
1998
93
1997
1996
1995
1992
1994
17 16
44 37 54
1993
12 7
1991
0
1990
100
250
183
145 165
Vintage Year
Fig. 8.2: Weighted and Median Net Multiple by Vintage Year
3.50
3.00
2.50
Median
Multiple
2.00
1.50
Weighted
Multiple
1.00
2012
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
0.00
1993
0.50
1992
The net investor gains and losses by
vintage year are illustrated in Fig. 8.3. The
capital called from investors is treated as
an outflow, and both the capital returned
to investors and the residual value of the
investor’s portfolio are treated as inflows.
Across the vintages shown, it can be seen
that investors have received a profit from
498 501
500
1991
Fig. 8.2 shows the median and weighted
multiples for vintages 1990 to 2012. The
weighted multiples take into account the
fund size, and are therefore more closely
correlated to the true overall performance of
the private equity industry, allowing for the
larger funds to have more of an impact in
the calculation. Across the vintages shown,
the weighted multiple generally outperforms
the median multiple. The two measures are
quite similar to each other for vintages 2008
to 2012, ranging from 0.96x to 1.22x. It is
worth noting that the performance for funds
with recent vintages are subject to change,
as these funds is still in the early stages of
their investment cycle and so the managers
still have a significant amount of time to add
value to their portfolios.
636
600
1990
slightly higher than the levels reached by
vintage 2005 funds. Total commitments to
vintage 2012 funds stand at $501bn.
Total Commitments ($bn)
700
Weighted/Median Net Multiple (X)
Fig. 8.1 displays the total investor
commitments to the private equity asset
class by vintage year, illustrating the growth
and evolution of the private equity industry.
The graph shows funds with a vintage
year between 1990 and 2012 that have
reached a final close or have had at least
one interim close. It is clear that throughout
the nineties there was a steady increase in
investor commitments to the private equity
asset class. Managers that raised funds
with a vintage year between 1990 and 1995
have collectively raised, on average, $19bn
per year, whereas firms that raised funds
with a vintage year between 1996 and 1999
collectively raised an average of $114bn
each year. Following the dot-com crash in
2000, commitments to private equity funds
fell, with a notable decline in commitments
to vintage 2001 to 2003 funds. In 2004,
fundraising started to recover, with $203bn
committed to vintage 2004 funds and
investor appetite increasing significantly
for vintage 2006 and 2007 funds. However,
the economic crisis in 2008 resulted in
a decline in LP commitments to funds
with a post-2008 vintage. Nevertheless,
in recent years there have been signs of
improvement; vintage 2011 funds show an
increase from the previous two years, with
LP commitment levels at $498mn, which is
757
2006
Historically?
2011
8. How Much Have Investors Gained
Vintage Year
© 2013 Preqin Ltd
Market Benchmarks - Sample Pages
Fund Type: Venture Capital
Vintage
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
15
No. of Funds
9
18
15
14
36
42
40
25
21
14
20
39
65
41
34
37
26
22
25
30
22
12
16
41
23
22
20
20
17
12
10
8
6
Geographic Focus: North America
Called (%)
15.3
36.7
55.0
60.0
71.0
88.1
92.7
96.5
99.0
98.9
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Median Fund
Dist (%) DPI Value (%) RVPI
0.0
92.2
0.0
93.0
0.0
101.8
11.0
116.7
6.7
94.0
19.0
95.5
27.1
69.6
33.2
76.5
34.4
57.7
76.0
51.9
46.1
23.8
71.3
28.5
77.9
22.4
65.2
2.9
131.7
0.0
187.3
0.0
183.0
0.0
282.0
0.0
274.2
0.0
261.8
0.0
203.8
0.0
330.2
0.0
218.8
0.0
230.2
0.0
282.0
0.0
218.6
0.0
182.1
0.0
200.1
0.0
199.2
0.0
168.3
0.0
175.3
0.0
181.6
0.0
228.2
0.0
Q1
0.95
1.10
1.18
1.41
1.29
1.67
1.51
1.45
1.44
1.68
1.37
1.50
1.37
1.33
1.56
3.96
4.52
5.26
5.71
3.56
3.90
5.79
3.24
3.20
3.51
3.80
2.36
3.17
2.34
3.77
2.00
n/m
n/m
Benchmark Type: Median
Multiple Quartiles (X)
Median
0.93
1.03
1.09
1.31
1.11
1.25
1.05
1.07
1.15
1.32
0.85
1.13
1.06
0.80
1.38
1.87
1.92
2.52
2.74
2.62
2.04
3.31
2.19
2.31
2.82
2.19
1.82
2.01
1.99
1.69
1.76
1.82
2.29
Q3
0.81
0.84
1.01
1.12
0.86
1.01
0.83
0.80
0.73
0.81
0.50
0.73
0.73
0.47
0.59
1.28
1.25
1.34
1.02
1.09
1.14
2.19
1.60
1.60
1.69
1.54
1.38
1.61
1.55
1.44
1.30
n/m
n/m
As at: 31 December 2012
Q1
n/m
n/m
n/m
22.5
10.0
18.1
12.1
9.0
8.9
12.6
6.9
7.8
7.1
6.2
18.1
99.9
68.5
95.4
59.7
53.1
36.1
48.9
22.0
27.5
34.0
22.1
15.6
17.8
13.8
15.3
10.8
n/m
n/m
IRR Quartiles (%)
Median
n/m
n/m
n/m
15.5
2.9
6.7
2.1
1.7
1.9
8.4
-2.1
2.6
1.6
-2.6
9.4
29.8
24.3
33.1
27.1
34.1
18.6
28.7
18.0
14.6
23.5
14.8
9.5
13.0
12.8
9.9
9.2
13.0
14.0
Q3
n/m
n/m
n/m
8.7
-6.6
1.7
-4.9
-5.6
-4.3
0.6
-11.3
-5.0
-5.3
-13.1
-7.4
8.4
6.8
6.9
11.4
3.0
7.0
16.0
3.9
6.9
10.9
6.2
5.3
8.5
7.6
4.5
7.0
n/m
n/m
IRR Max/Min (%)
Max
Min
n/m
n/m
n/m
n/m
n/m
n/m
32.1
-9.5
50.3
-21.6
62.0
-27.3
26.7
-26.5
37.9
-75.3
68.8
-12.8
29.4
-5.4
21.1
-47.2
30.4
-20.3
50.2
-40.0
154.7
-40.6
514.3
-46.1
267.8
-14.3
188.4
-33.3
447.4
-22.0
94.1
-19.4
105.7
-29.1
110.4
-20.1
346.4
8.5
74.4
-35.9
198.5
-42.1
54.5
1.2
28.0
-12.4
34.4
-0.7
40.7
4.0
45.7
6.0
51.6
-3.5
64.3
-1.6
67.4
0.5
50.6
-4.3
© 2013 Preqin Ltd
Distressed Private Equity - Sample Pages
Fund Size
(mn)
Type
1998
300 USD
2004
500 USD
2008
3,000 USD
H.I.G. Bayside Loan Opportunity Fund II
2010
1,100 USD
Distressed Debt
North America
41.4
9.8
96.1
1.06
6.0
BDCM Opportunity Fund
2003
416 USD
Distressed Debt
North America
100.0
226.4
20.8
2.47
21.4
Firm Name
Fund
Banc Fund V
Bayside Capital
Bayside Opportunity Fund
H.I.G. Bayside Debt & LBO Fund II
Black Diamond Capital
Management
Vintage
Region Focus
Called
(%)
Distributed
(%) DPI
Res. Value
(%) RVPI
Multiple
(X)
Special Situation
North America
100.0
Distressed Debt
North America
n/a
Distressed Debt
North America
50.0
Net IRR Benchmark
Quartile
(%)
IRR (%)
228.1
0.0
2.28
15.6
8.2
1
n/a
n/a
n/a
5.8
7.2
3
31-Dec-11
26.6
98.8
1.25
n/a
15.9
3
31-Mar-13
11.7
4
31-Dec-12
21.4
1
31-Mar-13
Date
Reported
31-Mar-13
BDCM Opportunity Fund III
2011
800 USD
Distressed Debt
North America
50.6
39.4
67.7
1.07
n/a
n/m
n/m
31-Mar-13
Black Diamond Opportunity Fund II
2006
983 USD
Distressed Debt
North America
100.0
32.0
142.7
1.75
16.8
6.4
1
31-Mar-13
Blue Wolf Capital
Management
Blue Wolf Capital Fund II
2009
118 USD
Special Situation
North America
70.7
37.8
81.5
1.19
13.9
14.9
3
30-Jun-12
Brookfield Capital Partners
Brookfield Capital Partners I
2001
416 CAD
Turnaround
North America
126.7
160.1
0.5
1.61
n/a
18.7
3
31-Dec-12
Brookfield Capital Partners II
2006
1,000 CAD
Turnaround
North America
125.5
70.3
81.5
1.52
n/a
6.4
2
31-Dec-12
Carlyle Strategic Partners
2004
211 USD
Distressed Debt
North America
67.8
247.0
9.8
2.57
31.3
7.2
1
31-Dec-12
Carlyle Strategic Partners II
2007
1,352 USD
Distressed Debt
North America
96.5
72.3
76.0
1.48
11.7
10.2
2
31-Dec-12
CVI Credit Value Fund
2010
854 USD
Distressed Debt
North America
95.0
0.6
124.8
1.25
18.7
11.7
1
30-Sep-12
CVI Global Value Fund I
2007
5,750 USD
Distressed Debt
North America
95.0
58.8
68.6
1.27
4.9
10.2
4
31-Dec-12
CVI Global Value Fund II
2008
2,000 USD
Distressed Debt
North America
95.0
45.0
122.0
1.67
15.9
15.9
1
30-Jun-12
Catalyst Fund I
2002
186 USD
Distressed Debt
North America
75.0
173.8
0.2
1.74
21.2
21.2
3
31-Mar-13
Catalyst Fund II
2006
540 USD
Distressed Debt
North America
99.0
41.3
116.7
1.58
13.1
6.4
1
31-Mar-13
Catalyst Fund III
2009
1,020 USD
Distressed Debt
North America
45.0
16.2
129.6
1.46
23.2
14.9
1
31-Mar-13
Catalyst Fund IV
2012
Distressed Debt
North America
20.0
2.1
113.1
1.15
n/m
n/m
n/m
31-Mar-13
Centerbridge Capital Partners I
2006
3,200 USD
Distressed Debt
North America
92.8
93.9
101.4
1.95
20.7
6.4
1
31-Dec-12
Centerbridge Capital Partners II
2011
4,400 USD
Distressed Debt
North America
44.9
11.9
97.6
1.10
n/m
n/m
n/m
31-Dec-12
Centerbridge Special Credit Partners
2009
2,000 USD
Distressed Debt
North America
95.0
3.9
144.9
1.49
16.4
14.9
2
30-Sep-12
Centerbridge Special Credit Partners II
2012
2,000 USD
Distressed Debt
North America
15.0
0.0
99.9
1.00
n/m
n/m
n/m
30-Sep-12
Cerberus Institutional Partners
1999
322 USD
Distressed Debt
North America
100.0
223.7
3.7
2.27
14.6
7.9
1
31-Mar-13
Cerberus Institutional Partners (Series Four)
2006
7,425 USD
Distressed Debt
North America
92.3
43.4
99.6
1.43
8.0
6.4
2
31-Mar-13
Cerberus Institutional Partners (Series
Three)
2003
1,726 USD
Distressed Debt
North America
81.0
135.5
47.5
1.83
12.6
21.4
3
31-Mar-13
Cerberus Institutional Partners (Series Two)
2001
1,011 USD
Distressed Debt
North America
86.0
273.3
28.4
3.02
26.8
18.7
1
31-Mar-13
Cerberus Institutional Partners V
2012
2,610 USD
Distressed Debt
North America
63.4
0.2
121.5
1.22
n/m
n/m
n/m
31-Mar-13
Chilmark Partners
Zell / Chilmark Fund
1991
1,000 USD
Distressed Debt
North America
116.4
219.2
0.0
2.19
17.9
23.0
3
31-Mar-13
Clearlake Capital Group
Clearlake Capital Partners II
2009
410 USD
Special Situation
North America
87.4
33.3
96.8
1.30
23.2
14.9
2
31-Dec-12
Clearlake Capital Partners III
2012
785 USD
Special Situation
North America
5.2
0.0
94.7
0.95
n/m
n/m
n/m
31-Dec-12
Clearwater Capital Partners Clearwater Capital Partners Fund II
2005
158 USD
Special Situation
Asia
100.0
100.1
39.3
1.39
6.2
6.2
2
31-Mar-13
Clearwater Capital Partners Fund III
2007
900 USD
Special Situation
Asia
100.0
35.9
91.2
1.27
5.1
8.6
3
31-Mar-13
Clearwater Capital Partners Fund III Annex
2008
91 USD
Special Situation
Asia
100.0
81.8
63.9
1.46
15.0
15.0
2
31-Mar-13
Clearwater Capital Partners Fund IV
2011
377 USD
Special Situation
Asia
40.0
0.0
104.3
1.04
n/m
n/m
n/m
31-Mar-13
Clearwater Capital Partners I
2001
22 USD
Special Situation
Asia
100.0
854.5
137.6
9.92
49.2
22.1
1
31-Mar-13
Commerce Street Income Partners
2006
52 USD
Distressed Debt
North America
100.0
5.9
67.1
0.73
-6.7
6.4
4
31-Mar-13
Commerce Street Income Partners II
2009
125 USD
Distressed Debt
North America
100.0
17.0
115.6
1.33
8.9
14.9
3
31-Mar-13
Carlyle Group
CarVal Investors
Catalyst Capital Group
Centerbridge Capital
Partners
Cerberus Capital
Management
Commerce Street Capital
16
© 2013 Preqin Ltd
Real Estate - Sample Pages
Fig. 24.4: Real Estate - Net IRR Deviation from Median Benchmark
2.50
21.9%
20%
Value-Added
Multiple
1.50
1.00
Opportunistic
Multiple
Net IRR Percentage Point Difference from Median Benchmark
2012
2011
2010
2009
2008
2007
2006
2005
2004
Vintage Year
Fig. 24.6: Real Estate - Net Cash Flow by Vintage Year (LP with $10mn Commtiment)
Fig. 24.7: Real Estate - Quartile Ranking by Fund Series Number
4.0
100%
Vintage 2003
2.0
90%
Vintage 2004
Vintage 2005
0.0
0
1
2
3
4
5
6
-2.0
7
8
9
10
Vintage 2006
Vintage 2007
Vintage 2008
-4.0
Vintage 2009
-6.0
Vintage 2010
Vintage 2011
-8.0
Vintage 2012
-10.0
80%
Proportion of Funds
Net Cash Flow ($mn)
2003
2002
2001
2000
1999
0.00
1998
0.50
1997
60% and Above
55% to 59.9%
50% to 54.9%
45% to 49.9%
40% to 44.9%
35% to 39.9%
3.8%
1.5%
0.4%
0.6%
0.4%0.2% 0.4% 0.2%
0.0% 0.0%
30% to 34.9%
5% to 9.9%
10% to 14.9%
0% to 4.9%
-0.1% to -5%
-5.1% to -10%
-10.1% to -15%
-15.1% to -20%
-20.1% to -25%
-25.1% to -30%
-30.1% to -35%
-35.1% to -40%
-40.1% to -45%
-45.1% to -50%
5%
25% to 29.9%
3.5%
2.2%
0.6% 1.5%
0.7% 0.4%
0.5%
0.0%
0%
7.7%
20% to 24.9%
10%
1996
9.3%
2.00
1995
12.0%
13.6%
15% to 19.9%
15%
Median Net Multiple (X)
18.6%
-50.1% and Below
Proportion of Funds
25%
Fig. 24.5: Real Estate - Median Net Multiple: Value Added vs. Opportunistic Funds
29%
24%
20%
Top Quartile
70%
60%
22%
24%
25%
26%
25%
Second Quartile
50%
40%
30%
28%
24%
26%
28%
Third Quartile
Bottom Quartile
20%
10%
22%
26%
24%
27%
Fund No. 1
Fund No. 2
Fund No. 3
Fund No. 4 and
Later
0%
Investment Year
17
© 2013 Preqin Ltd
2013 Preqin Private Equity Performance
Monitor
alternative assets. intelligent data.
The 2013 Preqin Private Equity Performance Monitor, now in its tenth edition, includes league tables showing the top performing
funds of each fund type and vintage year, as well as identifying which managers are the most consistent top performers, again
broken out for all the major fund types. The 2013 Preqin Private Equity Performance Monitor contains new areas of analysis and key
metrics for more funds than ever before, with over 6,300 vehicles, including more than 900 private real estate funds managed by
300 different firms.
This year’s expanded and fully updated edition includes:
The 2013
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Annual and quarterly changes in fund valuations.
Examination of risk vs. return for different fund types.
Benchmarks across different fund types by vintage year and geographic focus.
Dry powder and assets under management.
Detailed analysis sections examining key trends by different fund type, size and region.
Private equity returns examined against public markets.
The performance of listed private equity.
alternative assets. intelligent data
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