The State Street Global Exchange Private Equity Index (GXPEI) posted a moderate increase of 3.03 per cent in the third quarter of 2018.
The Venture Capital category continued to lead for the third quarter in a row with a 4.65 per cent gain, followed by Buyout Funds with 2.84 per cent; Private Debt lagged behind with a 1.34 per cent return for the quarter.
The PEI is based on directly-sourced limited partnership data and represents around USD2.8 trillion in private equity investments, with more than 2,900 unique private equity partnerships, as of September 30 2018.
“2018 is on course to set the highest post-crisis fundraising records,” says Anthony Catino, managing director, Alternative Investment Solutions for State Street. “In the first three quarters of 2018, Venture Capital and Private Debt surpassed their post-crisis fundraising peaks in 2017. The US and ‘Rest of the World’ focussed funds met or were above their 2017 fundraising level, while European funds continue to lag behind.”
“In the third quarter of 2018, we saw much of the momentum from Q2 carry over with US and Venture Capital funds continuing to outperform. However, we also saw Buyout and European Funds quarterly returns fall to nearly their lowest levels in two years due to strong headwinds from factors including, rising interest rates, a stronger US dollar and intensifying trade wars,” says Will Kinlaw, senior managing director and global head of State Street Associates, a division of State Street Global Exchange. “It is a challenging situation for many General Partners with increasing inflows to deploy capital effectively in such a precarious environment.”
