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.