Cambridge Associates: US Private Equity Continues to Generate Positive Returns

U.S. Private Equity Continues Recovery


November 1, 2011

Amidst a still challenging global macroeconomic environment, private equity and venture capital funds in the US continued to generate positive returns for their investors during the quarter ending 30 June 2011, the ninth consecutive quarter of positive earnings for each asset class.

Both asset classes also closed the door on the first half of 2011 with quarterly and six-month returns that handily bested those of the public equity markets, according to benchmarks on the performance of private equity and venture capital funds published by Cambridge Associates.

Solid second quarter results for private equity and venture capital bolstered their six-month returns and helped overcome a weaker relative showing during the first quarter, when both asset classes trailed the public markets, the firm said. Its US Private Equity Index returned 4.5 per cent for the second quarter, which was down from the previous quarter’s 5.4 per cent. Its Venture Capital Index earned seven per cent in the second quarter, an improvement of two per cent over the prior quarter. Increased private company valuations and continued interest in IPOs and M&A helped the returns, according to the firm.

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