The State Street Private Equity Index, which includes more than 1,600 private equity partnerships with aggregate commitments of approximately USD1.5trn, posted a return of 5.48 per cent in the second quarter of 2009 after five consecutive quarters of negative returns.
All strategies and geographies were positive contributors during the quarter, with the biggest impact coming from buyout funds and US domiciled funds.
When compared to the Q2 2008 quarterly return, the State Street Private Equity Index increased by 699 basis points, from -1.51 per cent. Since inception IRR as of the end of June 2009 was 9.08 per cent, a 69 basis points increase from Q1 2009.
Distressed debt and mezzanine funds posted an impressive 16.02 per cent return for the second quarter of 2009, up more than 1,400 basis points from the same quarter a year ago.
Buyout funds recorded a 4.74 per cent return for the period, an increase of 703 basis points relative to the year ago quarter.
Venture fund’s return was 0.21 per cent during the second quarter of 2009, which compares favourably to the 0.07 per cent return posted during the same period a year ago.
Since inception IRR as of 30 June 2009 for the US and European funds in the index was 9.14 per cent and 11.43 per cent, respectively. The since inception IRR for the rest of the world funds continues to be negative at -0.06 per cent, however, this is an increase of 391 basis points relative to the first quarter of 2009.
