Funds Performance Analysis - 2014 Vintage
What’ the right KPI to measure the performance of PE and VC Funds?
It depends on the time frame, but probably on a 10 years period, the DPI is the best way to measure performances.
Using PitchBook data, I analysed the performance of different Fund categories using the 2014 Vintage.
- Best in class (not surprising) are North American PE Funds with a median DPI of 1.38x
- Worst in class:
o Global Funds of Funds category performs particularly bad, with a median DPI of 0.92x (after 10 years in business they still didn’t return at least the capital invested);
o Non-US PE Funds, with a median DPI of 0.86x;
- Both Debt Funds and Secondary Funds don’t seem a great investors category either, with a median DPI of just 1.1x and 1.05x;
- Global PE and Global VC Funds have a similar median DPI, around 1.18x.
- A 1$ invested in the ETF S&P 500 in 2014 would have return $2.7 (2.7x)..
Comments