According to Buyouts Insider, one issue that has haunted emerging managers trying to convince LPs to open their wallets -- how well do these early funds perform and is it worth the risk?
Preqin has an answer: It reviewed a sample set that spans 13 vintage years from 2000 to 2012, and found that 2004 is the only year in which non-first time funds outperformed first-time funds.
The 2012 median net internal rate of return hovered around 24 percent for first-time funds, and around 11 to 12 percent for non-first time funds, the private equity data provider said in a recent report.
This should be good news for LPs who are looking for some alternative to the m...
According to a recent PEI online exit poll, the respondants, including GPs, LPs, and other industry participants, leaned heavily towards Democratic nominee Hillary Clinton, who won 77 percent of the votes, versus 15 percent for her Republican rival, Donald Trump.
An excellent special issue sponsored by IL&FS, India's leading infrastructure private equity manager on the up-and-coming private debt sector in the country. 5Capital is now advising IL&FS on the international fundraising of their private debt strategies.
According to PEI, 2016 is turning out to be yet another healthy year for global private equity fundraising, with nearly 400 funds raising $300 billion in dry powder, during the first 9 nine months of the year. Click here for the report.
Average IRR The arithmetic mean of all IRR figures in a given sample of results.
Called-up % The proportion of LPs' commitment to a fund that has already been contributed, including any management fees called.
Carried Interest The share of fund's net investment gains earned by the GP, usually on a whole fund basis, in the case of private equity, after the fund has returned the cost of investment to the LPs. The industry norm is 20%.
Distributed (Distributed to Paid-in or DPI) % The proportion of called-up% that has been returned or distributed to the LPs, after the management fees and carry.