Report lists most consistently performing VCs and buyout firms

Tremor, Canaan

Which venture capital and buyout firms have a history of providing the most consistent returns?

According to a new report from investment data provider Preqin, five VCs stand out. They are: Sequoia Capital, Benchmark Capital, OrbiMed Advisors, Union Square Ventures and Pittsford Ventures Management. Of those, only one is a newcomer to the list: Union Square Ventures.

Four buyout managers achieved the best possible score in Preqin’s ranking: Altor, Rhone Capital, Trilantic Capital Partners and Wynnchurch Capital Partners. Altor is based in Sweden, while the others are in the United States. Rhone and Trilantic are newcomers to the list.

The ranking looks for firms that have a record of consistently outperforming their peers. It looks at return multiple, IRR, and also compares to peers, taking into account fund vintage, strategy and geographic focus.

The analysis does not include returns from 2012, 2013 and 2014 vintage funds, which are typically too early in their lives to generate a meaningful IRR. The lists are restricted to active fund managers that have raised at least three funds of a similar strategy, and have either raised a fund in the past six years or are currently raising a fund of a similar strategy to their predecessor fund.

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