European PE Sector – Financial Performance

(…)Financial performance: While not all PE funds are profitable (a recurring figure suggests that between 83 and 90% are profitable), data analysis and studies have shown that the investment performance of PE funds outperforms investment yields of listed companies over short, medium and long-term horizons. Indeed, the average internal rate of return for PE investments is, when looking at historical data – 30 years of PE existence – for Europe, around 15% when the overall economy was around 6-7%. This outperformance is even bigger when looking at more recent years, probably driven by the growing experience and expertise of PE managers. (…)