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Peak time growth funds show positive returns

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Growth equity funds with 2007 vintages have outperformed expectations by producing 7.3 per cent returns, new Preqin data shows. 

Growth funds of vintage 2006, meanwhile, generated median returns of 7.8 per cent, outperforming their buyout counterparts by 1.7 percentage points.

The performance of such funds is highest for 2005 vintages, which have generated an average IRR of 25 per cent. 

Other private equity types have also seen peak performance with earlier vintages. 

“Growth funds have emerged in recent years as a distinct strategy as more fund managers are targeting minority stakes in maturing companies,” says Bronwyn Williams, a manager at Preqin. 

Read more from our sister title Real Deals.

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