Returns, risks and liquidity of VC Funds in Q3 2020
At the close of Q3, 2020 has shown to be an exceptional year for venture capital performance, with funds globally …
Feb 02, 2021
Most hurdle rates featured in private equity funds are set at 8% of internal rate of return. Although the origin of this specific figure is unclear, it is still largely applied to this day. It is of crucial importance for the fund manager: if this rate of return is not reached, then fund investors collect the full profits of the fund.
As the hurdle rate is time sensitive, this puts venture fund managers at a disadvantage, especially since venture-backed companies tend to stay private longer. More than 60% of LBO funds managed to beat the hurdle, while only 38% of VC funds exceeded the 8% threshold. This confirms that shorter holding periods characteristic for buyout strategy go in favour of LBO fund managers.
Returns, risks and liquidity of VC Funds in Q3 2020
At the close of Q3, 2020 has shown to be an exceptional year for venture capital performance, with funds globally …
Feb 02, 2021
Private Equity Market Data and the US Government Partisanship
See what our data reveals for private equity performance when comparing a divided vs. unified US government ahead of the …
Dec 17, 2020
Private equity in the COVID-19 year
Our latest research reveals that the global private equity market showed higher resiliency and lower volatility over the first two …
Dec 14, 2020