top of page

Examining the Returns 2023: Further Evidence of Diverse-Owned Private Equity Firm Outperformance


Diverse- and women-owned private equity firms continue to outperform their benchmarks despite a challenging business environment, according to a report released by the National Association of Investment Companies (NAIC). Updated and published biennially, Examining the Returns 2023: Further Evidence of Diverse-Owned Private Equity Firm Outperformance is the industry's only quantitative study that measures the performance of diverse- and women-owned private equity firms.





Key findings of Examining the Returns 2023 include:

 

  • As in prior years, the NAIC Diverse Private Equity Index significantly outperformed the benchmark Burgiss median return, recording a net Internal Rate of Return (IRR) of 17.23 percent, a net Total Value to Paid In (TVPI) of 1.68x and Distributed to Paid-In Capital (DPI) of 0.66x compared with Burgiss median performance of 11.58 percent, 1.37x and 0.44x, respectively. This represents almost 600 basis points of outperformance from an IRR perspective.

  • Roughly 31 percent of the funds in the NAIC Private Equity Index produced top-quartile net IRRs during the period studied.

  • The NAIC Private Equity Index generated an IRR in the first or second quartile 72.2 percent of the time and posted a TVPI and DPI in the first or second quartile approximately 83 percent of the time.

Comentarios


bottom of page