Buyout funds managed by Platinum Equity and Monomoy Capital
Partners produced some of the best returns in the private
equity industry over the past decade, according to
PitchBooks annual global private equity and venture
capital fund benchmarking report.
Platinum Equity Capital Partners III fund from 2012 posted
an internal rate of return of 41.75 percent, the highest IRR
among buyout funds larger than $1 billion that were originated
between 2010 and 2013,
the report shows. For 2008 to 2011 vintage buyout funds
that raised less than $500 million, Monomoy Capital Partners II
from 2011 was the top performer with a 63 percent IRR.
In private equity, 2009 remains the best year to have
invested in the industrys funds, with the top quartile
earning an average IRR of 19.6 percent and a median return 12.2
percent, according to PitchBook. Distributions across both
private equity and venture capital have been on the rise since
2009, the data provider said, pointing to the record $416
billion that global private equity funds returned to investors
The distributions have fueled strong fundraising for private
equity firms over the past few years as limited partners were
happy to recycle cash back into an asset class that had
produced such strong returns, said PitchBook, which broke
down performance across vintage years and fund types over the
10 years through June 30 2016.
Private equity funds, venture capital funds, debt funds, and
funds-of-funds all earned between 9 and 10 percent on average,
its annual benchmarking report shows.
Venture capital was the most volatile group. The category
lost 0.9 percent in the last year, while producing an average
IRR of nearly 15 percent over a three-year horizon. The 2011
vintage was particularly profitable crop of funds for
investors, producing a median 17.6 percent IRR.
Foundry Group topped the below-$250 million category for
vintage years between 2003 and 2007, with its 2007 venture
capital fund producing an IRR of 44.26 percent. For venture
capital funds with more than $500 million that originated
between 2009 and 2012, Lightspeed Venture Partners and Canaan
Partners were singled out by PitchBook as top performers.
Lightspeed Venture Partners IX posted a 37.99 percent return
while Canaan IX had an IRR of 37.95 percent, with both funds
originating in 2012.