PE Funds From Recent Vintages Outpacing Those Hit By Financial Crisis

PE Funds From Recent Vintages Outpacing Those Hit By Financial Crisis by Garrett James Black, PitchBook

The ramifications of the financial crisis are still apparent in the numbers posted by private equity funds.

Let’s take DPI multiples as a sample metric for now; for vintages most affected by the crisis–2005, 2006 and 2007, as indicated below–the adverse effects of the recession are still strong despite how long it’s been. As the chart depicts, at the four-year mark from inception, vintages from 2008 onward are outpacing the three hit hardest, with 2009 in particular showing considerable strength.

PE Funds’ DPI multiples

This outcome is hardly surprising, given how active...