Private equity (PE) and venture capital (VC) funds in the US showed stronger performance in the second quarter of 2016 than the first, according to Cambridge Associates.
Energy investments helped generate the rebound for the PE benchmark, and returns from healthcare VC investments made the biggest leap from the first quarter of 2016 to the second.
The Cambridge Associates US Private Equity Index returned 4.0 per cent in Q2 2016, outperforming the large-cap S&P 500, the small-cap Russell 2000 and the tech-oriented Nasdaq Composite indices for the quarter.
The Cambridge Associates US Venture Capital Index posted a 0.7 per cent return in Q2 2016, up from -3.3 per cent return in the first quarter.
"US PE funds outperformed public markets over the first half of 2016, as they continue to regain some of the lost ground ceded in the 2012-2014 bull market. Importantly, over the last 10-, 15-, 20- and 25-year periods, the asset class has continued to demonstrate its strong potential for investors that can maintain a long-term perspective and allocation," says Keirsten Lawton, co-head of US private equity research at Cambridge Associates.
"Venture capital funds in the US generated a positive return in Q2 2016, following a disappointing first quarter as private valuations pulled back to some extent after peaking in 2015. The asset class has largely outperformed public markets over extended time horizons – for example, 10, 20 and 25 years," says Theresa Hajer, managing director, private growth research at Cambridge Associates.
