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2022
Global Fund Performance Report (as of Q3 2021 with preliminary Q4 2021 data)
May 4, 2022
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Global fund performance holds strong, but a decline could be on the horizon
One-year horizon IRRs through Q3 2021 remained incredibly strong despite another wave of COVID-19 during the quarter that raised concerns about a pullback in performance. Returns to date indicate that the majority of private market funds have been able to pivot to handle pandemic-related challenges.
Our latest Global Fund Performance Report uses data through Q3 2021 as well as some preliminary Q4 figures to provide a comprehensive look at the returns of various fund strategies. We also examine why public market comparisons may lead to disappointing private markets performance in coming quarters.
Key takeaways
This report was reuploaded on May 13, 2022, to update the legend of the chart on page 3.
Table of Contents
Global fund performance holds strong, but a decline could be on the horizon
One-year horizon IRRs through Q3 2021 remained incredibly strong despite another wave of COVID-19 during the quarter that raised concerns about a pullback in performance. Returns to date indicate that the majority of private market funds have been able to pivot to handle pandemic-related challenges.
Our latest Global Fund Performance Report uses data through Q3 2021 as well as some preliminary Q4 figures to provide a comprehensive look at the returns of various fund strategies. We also examine why public market comparisons may lead to disappointing private markets performance in coming quarters.
Key takeaways
- Private equity returns cooled in Q3 2021, dropping to 6.8% amid a quickly changing macroeconomic backdrop. That figure represents the strategy’s lowest quarterly IRR since Q1 2020.
- Real estate hit a 17.2% one-year horizon IRR, its best one-year performance since 2014, with preliminary Q4 IRR suggesting a bright future for the asset class.
- Private debt performance waned drastically during the quarter, but still remains strong on an annual basis, though deceleration of these figures is anticipated in coming quarters.
- Secondaries funds stepped up to a new level of fundraising in 2020 and experienced a substantial uptick in performance during 2021, notching a one-year horizon IRR of 52.5%.
This report was reuploaded on May 13, 2022, to update the legend of the chart on page 3.
Table of Contents
| Overview | 3 |
| Private equity | 7 |
| Venture capital | 9 |
| Real estate | 11 |
| Real assets | 14 |
| Private debt | 16 |
| Funds of funds | 18 |
| Secondaries | 21 |