The European private equity trade body will publish performance figures that say private equity funds on average have generated annual returns, net of fees, of 10.3 per cent over the 10 years ended 2006. The figures, compiled by Thomson Financial for the EVCA, compare with an adjusted 5.5 per cent annual return over 10 years in the Morgan Stanley Euro Equity index. However, the figures underline highly variable results in different segments of private equity – European buy-outs have significantly outperformed venture capital – and large differences between the best and worst performing funds. Upper quartile venture capital funds generated annual returns of 23.6 per cent, while bottom quartile generated negative returns of 20.4 per cent. Upper quartile buy-out funds generated returns of 37.6 per cent, while the bottom quartile made negative 10.2 per cent.

This entry was posted by Helen Thomas on Tuesday, March 13th, 2007 at 4:56 and is filed under Private equity. Edit this entry.