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Investment benchmarks - European private equity preliminary report

Unsurprisingly, the tech downturn, falling company valuations and the stock market's deflation have affected short-term returns in European private equity. One-year pooled IRR stands at –2.3 per cent, although long-term returns remain robust, according to figures recently out. Gillian Middleton of Venture Economics presents the preliminary findings of the investment benchmarks study.

The short-term one-year horizon IRR of –2.3 per cent contrasts sharply with the long-term ten-year horizon IRR of 16.5 per cent. Almost all sectors of the asset class saw a decrease during 2001 with early-stage investments experiencing the largest drop at –8.9 per cent.

Copyright © 2002 Venture Economics

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Gillian Middleton is head of European private equity research at Venture Economics.

Venture Economics has been helping limited partners monitor their private equity portfolios for over 13 years through its LP services group. Venture Economics currently monitors almost $500 billion in institutional private equity assets in investments of over 1,200 private equity funds for our LP investor clients.

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