RT Journal Article
SR Electronic
T1 The Returns of Private Equity Funds: <em>A Swiss Perspective</em>
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 15
OP 27
DO 10.3905/jpe.2017.20.2.015
VO 20
IS 2
A1 Daniel Steger
YR 2017
UL https://pm-research.com/content/20/2/15.abstract
AB The author presents private equity fund returns in absolute terms and relative to the public market. The study is based on a unique, hand-collected dataset containing 531 private equity funds and 25,130 cash flow data points, representing 45% of Swiss pension funds’ private equity investments. Analysis shows a cross-sectional mean internal rate of return of 9% for direct private equity funds, 18% for buyout funds, –4% for venture funds, and 12% for funds of funds. Furthermore, private equity funds have outperformed broader public market indexes by 9% to 19% over the lifetime of a fund, with buyout funds being the best performing subgroup.TOPICS: Private equity, developed, performance measurement, statistical methods