Preqin, in anticipation of the publication of its 2014 Private Equity Performance Monitor, has created league tables of private equity managers that have most consistently outperformed their peers.
Ten managers across three fund strategies — buyout, venture capital and funds of funds — received the highest possible score compared with similar league tables in 2013.
Preqin, which produces research on alternative investments, compiled the tables only from funds for which it had performance data and had assigned a quartile ranking. Top quartile funds were given a score of one, second quartile funds a score of two and so on. An average quartile ranking was then calculated.
Preqin assigned quartile rankings to private equity funds based on both the multiple and internal rate of return (IRR), taking into account the fund vintage, strategy and geographic focus.
The league tables excluded 2012, 2013 and 2014 vintage funds because these were too early in their fund lives to generate a meaningful IRR.
The lists comprised only active fund managers that had raised at least three funds of a similar strategy, and had either raised a fund in the past six years or were currently raising one of a similar strategy to their predecessor fund.
Four buyout managers achieved an average quartile score of 1.00, the best possible score:
- Altor: based in Sweden. Last year’s score: 1.33
- Rhone Capital: based in the U.S. New to rankings
- Trilantic Capital Partners: based in the U.S. New to rankings
- Wynnchurch Capital Partners: based in the U.S. Last year’s score: 1.00
Five venture capital fund managers achieved the best score of 1.00. All are U.S. based:
- Pittsford Ventures Management. Last year’s score: 1.00
- Sequoia Capital. Last year’s score: 1.00
- Benchmark Capital.Last year’s score: 1.00
- OrbiMed Advisors.Last year’s score: 1.33
- Union Square Ventures. New to rankings
Only one fund-of-funds manager achieved the best average score of 1.00 in 2014: Nordea Private Equity,based in Denmark. The manager is a new entry to the league table this year.
ATP Private Equity Partners in Denmark and Morgan Stanley Alternative Investment Partners, which both had a score of 1.00 in 2013, had average quartile scores of 1.25 and 1.33, respectively, this year.
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