European Private Equity performance: encouraging results for mid-market investors
01 Mar 2010
In January 2010, Acanthus compiled and analysed performance data for European private equity buyout funds raised between 2004 and 2009. The results are encouraging for mid-market investors, underlining the strong fundamentals that underpin this segment of the private equity market.
Some of the key findings
Mid-market buyout funds raised between 2004 and 2009 outperformed funds larger than €1bn and have generated, overall, positive gains despite the downturn. Funds that raised more than €1bn in this period posted a loss of more than €15bn from the €84bn they had invested - 35 of these 43 funds lost €23bn on €62bn which translates to -38%
Mid-market funds also returned proportionately more cash to investors, having returned €14bn in cash of the €46.7bn called down while funds of more than €1bn had returned only €18bn
Looking forward, funds worth less than €1bn have €57bn of dry powder in the funds raised, while larger funds have a further €80bn of uncommitted capital which represents a major overhang for fund raising in the mid-market.
We believe that the data conclusively contradicts the perceived wisdom that mid-market funds are more volatile than larger funds. Overall, mid-market funds have made a positive return with lower losses and higher gains.
For further details, you will find the result of our research in the attached file.
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