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State Street Private Equity Index returns -6.46 per cent in Q1

The State Street Private Equity Index returned -6.46 per cent in quarter one 2009, ending four consecutive quarters of downward trend.

The State Street Private Equity Index returned -6.46 per cent in quarter one 2009, ending four consecutive quarters of downward trend.

When compared to Q1 2008, the index declined by 560 basis points, from -0.87 per cent.

Since inception IRR declined by 124 basis points to 8.39 per cent during the quarter, dropping from 9.63 per cent reported in Q4 2008.

While venture capital and buyout funds reported a 103 and 114 basis point decline respectively, distressed debt, mezzanine and special situation funds since inception IRR declined by over 500 basis points.

US funds in the index reported a -5.46 per cent return and non-US funds reported a -10.05 per cent return in Q1 2009.

‘Providing increased granularity in global markets and continuing to expand our capabilities with the Index, we are pleased to announce that we’ve further classified non-US funds as a means to separately categorize European funds and rest of world funds’, says William Pryor, senior vice president of State Street Investment Analytics.

In line with current private equity market conditions, the quarter ended 31 March 2009 displayed a ten-year low in quarterly capital drawdowns relative to capital committed. However, Pryor says data shows indications of increased cash flow activities for the second quarter of 2009.

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