Returns, risks and liquidity of LBO Funds in Q4 2018
In 2018, the performance and risk of LBO funds have stabilized at levels fairly close to the records set in …
source: eFront INSIGHT
“Despite a drop in performance from the record high achieved in 2017, returns from venture capital funds globally have remained strong (above 1.4x of TVPI) over recent quarters. This, combined with a sharp reduction in the level of risk that returned it to pre-2013 level, presents investors with a real opportunity to generate attractive risk-adjusted returns from the asset class. Western Europe in particular looks very strong, and could see convergence with US performance should it be able to maintain the returns of recent vintages.
Companies now are held on average 2.87 years – below the long-term average of 3.27 years and a duration not seen since 2011. Two reasons could explain this evolution: the sharp decrease can be triggered by exits, but also an increase in recent investment activity.”