1 / 17

PRIVATE EQUITY PERFORMANCE BENCHMARKS

PRIVATE EQUITY PERFORMANCE BENCHMARKS. FVCA SPRING SEMINAR, RUKA, FINLAND DAVID BERNARD 23 APRIL 2009. INTRODUCING THOMSON REUTERS. We provide intelligent information to the world’s businesses and professionals , giving our customers a competitive advantage . Professional Division

soo
Download Presentation

PRIVATE EQUITY PERFORMANCE BENCHMARKS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PRIVATE EQUITY PERFORMANCE BENCHMARKS FVCA SPRING SEMINAR, RUKA, FINLAND DAVID BERNARD 23 APRIL 2009

  2. INTRODUCING THOMSON REUTERS We provide intelligent information to the world’s businesses and professionals, giving our customers a competitive advantage. Professional Division $5.5 billion 23,100 employees Markets Division $7.9 billion 27,200 employees Legal $3.5 B Tax & Accounting $0.9 B Scientific $0.6 B Healthcare $0.5 B Investment & Advisory $2.4 B Sales & Trading $3.8 B Enterprise $1.3 B Media $0.5 B “We make legal systems work better” “We reduce complexity and make compliance easier” “We accelerate research, discovery and innovation” “We improve health through information and insights” We power the world’s markets 2008 Revenues

  3. ThomsonONE.com The premier source for comprehensive information for private equity professionals • Private equity investments, fund raising, portfolio company profiles, firm profiles, limited partners • Uncovering companies that may be ripe for a merger, acquisition or divestiture • Identifying potential investors likely to support follow-on rounds • Using coverage lists enabling you to monitor market and competitor activity • Transaction details for PE investments, M&A, equity issues, bonds and loans • Company financials for public and private companies, globally • Real-time broker research from 1400 banks and independent research firms • Broker estimates • News from Reuters, PE Hub, EVCJ, PE Week, Venture Capital Journal, Acquisitions Monthly, Buyouts – tagged to the database • And much more

  4. THOMSON REUTERS’ PRIVATE EQUITY PERFORMANCE DATABASE • Maintained by Thomson Reuters (formerly known as Thomson Venture Economics) since 1988, online since 1991 • Available online in Thomson ONE and VentureXpert, where you can define your own performance sample (by country, vintage, size, focus, etc.) • 1971 US funds formed 1969-2008, in partnership with NVCA • 1310 European funds formed 1979-2008, in partnership with EVCA • 191 Canadian funds formed 1981-2008, in partnership with CVCA • 140 Asia-Pacific funds formed 1980-2008 • 82 funds of funds • Thomson Reuters has long-standing relationships with national and regional Private Equity and Venture Capital Associations worldwide

  5. SOURCES • ~50% from GPs upon request from LPs who contract our benchmarking services • ~50% from GPs who need data for their own benchmarking and fund raising needs • Since we get data from LPs in addition to GPs there is not a consistent or significant self reporting bias • We calculate IRR ourselves (we do not use self-reported IRRs) based on the underlying cashflows, and we verify against general partner financial reports to LPs • We treat confidentiality very carefully – all data reported is strictly anonymous

  6. PRINCIPAL MEASURES • Cumulative IRR Since Inception • Cumulative Realisation Multiples • Time Weighted Return • Investment Horizon Return • Monthly Cash Flows • Public Market Comparables – Index method

  7. EUROPEAN PRIVATE EQUITYCUMULATIVE IRR BY VINTAGE YEAR AS OF 31-DEC-08 J-curve effect? Source: Thomson Reuters / EVCA

  8. US PRIVATE EQUITYCUMULATIVE IRR BY VINTAGE YEAR AS OF 31-DEC-08 Source: Thomson Reuters / NVCA

  9. EUROPEAN PRIVATE EQUITY FUNDS FORMED 1980-2008NET RETURNS SINCE INCEPTION AS OF 31-DEC-2008 * fund size Source: Thomson Reuters / EVCA

  10. US PRIVATE EQUITY FUNDS FORMED 1969-2008NET RETURNS SINCE INCEPTION AS OF 31-DEC-2008 * fund size Source: Thomson Reuters / NVCA

  11. IRR SINCE INCEPTION AND MULTIPLES Source: Thomson Reuters Note: Data is continuously updated and is therefore subject to change. Nordic includes Norway, Sweden, Finland and Denmark. Calculation in € for European funds, in US$ for US funds, as of 31/12/2008

  12. EUROPEAN PRIVATE EQUITY FUNDS FORMED 1980-2008NET INVESTMENT HORIZON RETURN AS OF 31-DEC-2008 * fund size Source: Thomson Reuters / EVCA

  13. US PRIVATE EQUITY FUNDS FORMED 1969-2008NET INVESTMENT HORIZON RETURN AS OF 31-DEC-2008 * fund size Source: Thomson Reuters / NVCA

  14. INVESTMENT HORIZON PERFORMANCE Source: Thomson Reuters Note: Data is continuously updated and is therefore subject to change. Nordic includes Norway, Sweden, Finland and Denmark. Calculation in € for European funds, in US$ for US funds, as of 31/12/2008

  15. PRIVATE EQUITY AND PUBLIC MARKET COMPARATORS Net Pooled IRR Since Inception to the End of Each Year *Comparators are Internal Rates of Return (IRR). IRRs for public market indices are calculated by investing the equivalent cash flows that were invested in private equity into the public market index. Then an equivalent IRR is calculated for each index. Source: Thomson Reuters

  16. FOR MORE INFORMATION David Bernard Vice-President – Investment Banking & Private Equity david.bernard@thomsonreuters.com +33 6 87 97 87 81 Rosette Tyers Private Equity Research Manager - EMEA rosette.tyers@thomsonreuters.com +44 20 7542 9066 Data contributions & surveys

More Related