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US private equity performance remains steady in Q3 200631/01/2007. Source: AltAssets. 
 Private equity performance in the US was steady in both the short and long-term horizons for the period ending 30 September 2006, according to Thomson Financial and the National Venture Capital Association. Compared with the period ending Q2 2006, both the buy-out and venture capital asset classes showed very little fluctuation across all time horizons and continued to outperform both the S&P 500 and NASDAQ markets in the long term.
For venture capital firms, short-term performance showed a slight decrease with the one-year venture capital returns posting a 10.8 per cent return for Q3 2006, down from 13.7 per cent in Q2 2006. Five-year returns continued to improve and inch towards positive territory at -1 per cent in Q3 2006, up from -3.7 per cent in Q2 2006. This negative return continues to reflect the aftermath of the internet bubble burst. Ten and twenty-year returns remained steady at 20.5 per cent and 16.5 per cent respectively.
One-year buy-out returns saw a very slight decrease, posting 23.6 per cent for Q3 2006 compared to 26.2 per cent for Q2 2006. Ten and twenty-year buy-out returns were relatively steady at 8.8 per cent and 13.2 per cent respectively.
'Short-term buy-out returns are under increasing downward pressure. This pressure, coupled with the increase in five-year and relative stability of ten and twenty-year returns, indicate that competition within this asset class is causing turbulence in returns to investors,' said Darrell Pinto, director of global PE performance at Thomson Financial. 'It is worth noting that this volatility in short-term rates is most pronounced for funds less than $500m in size which posted an aggregated 37.2 per cent one-year return in the quarter.'
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