All Three Categories of Private Equity See Continued Uptick in
Returns
The State Street Global Exchange℠ Private Equity Index (GXPEI)
ended the fourth quarter of 2017 with a continued strong
performance by way of a 4.78 percent total gain. Buyout Funds lead
private equity strategies in gains with 5.23 percent for the
quarter.
The PEI is based on directly-sourced limited partnership data
and represents more than $2.7 trillion in private equity
investments, with more than 2,800 unique private equity
partnerships, as of December 31 2017.
Fourth Quarter Highlights Include:
- Buyout funds have now led in gains
among the three main private equity strategies (Buyout, Venture
Capital and Private Debt) for eight consecutive quarters.
- Venture Capital returns improved to
4.21% from 3.57% in Q3 while Private Debt funds inched higher to
3.15% in returns, up from 2.84% in Q3.
- Q4 2017 saw continued, yet slowing,
depreciation of USD against the Euro of 1.6%, following a Q3
decline of 3.5% and Q2 decline of 6.2%.
- European-focused private equity funds
experienced a 5.42% quarterly gain in USD-denominated terms (3.78%
in EUR-denominated IRR); US-focused funds returned 4.30%; and funds
focused on the rest of the world gained 6.14%.
- Among sectors, Industrial funds once
again saw the highest return, rising to 6.68% from 5.87% in Q3,
followed by Information Technology funds with a return of 5.91%, up
from 3.80% in Q3; Energy funds’ performance continued to improve
with a return of 4.05%, up from 2.59% in Q3.
- Average monthly paid-in-capital to
commitment (PICC) increased to 0.77% in 2017 up from 0.64% in 2016;
Average monthly distribution to commitment (DCC) increased to 1.07%
in 2017 up from 0.88% in 2016.
For additional insights, or to learn more about the GX Private
Equity Index please visit http://www.ssgx.com/peindex.
Index returns reflect capital gains and losses, income, and the
reinvestment of dividends.
It is not possible to invest directly in an index. Index
performance does not reflect charges and expenses associated with
the fund or brokerage commissions associated with buying and
selling a fund.
Index performance is not meant to represent that of any
particular fund.
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State Street CorporationJulie Kane, +1
617-664-3001JEKane@StateStreet.com@StateStreet
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