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AltAssets is the private equity news and research service from Almeida Capital
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PRINT THIS PAGE US VC performance continues to show positive returns across most investment horizons03/08/2007. Source: AltAssets. 
US venture capital performance continued to show positive returns across most investment horizons ending 31 March 2007, according to Thomson Financial and the US National Venture Capital Association. The five-year private equity performance index (PEPI) showed the most volatility from the period ending Q4 2006, with a 1.5 point increase to 2.7 per cent in Q1 2007. This increase is evidence of an improved exit market for venture capital-backed companies since the internet bubble burst, the study found. Short-term horizons showed minimal fluctuations quarter over quarter.
The one-year PEPI decreased by a half of a point from 18.6 per cent to 18.1 per cent quarter over quarter, while three-year performance increased to 9.6 per cent in the period ending Q1 2007 from 9.4 per cent in the period ending Q4 2006. Ten-year performance showed an increase from 20.4 per cent to 21 per cent in Q1 2007; and 20-year PEPIs remained steady at 16.4 per cent.
Mark Heesen, president of the NVCA, said, 'The venture capital industry continues to outperform the public markets long-term, offering strong returns to its limited partners, which include pension funds, endowments and foundations.
'Our most challenging investment horizon - the five-year horizon - continues to move further into positive territory reflecting improving exit markets over the last several quarters. Long-term, the venture industry performance remains extremely solid for the ten and 20-year horizons. As an asset class, we are focused entirely on this long-term statistic as it most accurately reflects our overall philosophy of patient and tenacious investing,' Heesen continued.
Copyright © 2007 AltAssets
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