European PE and VC Returns Show Resilience During Downturn: Slideshow

European private equity and venture capital performance has remained stable during the downturn, according to recent figures from the European Private Equity and Venture Capital Association (EVCA) and Thomson Reuters.

EVCA’s 2011 Performance Report reveals that the net-pooled IRR of the 1,431 funds included in the study was 8.95%.

Returns for buyout funds was down slightly to 11.4% (12.7% in 2010), while returns for venture funds increased to 1.5% (0.5% in 2010).

Buyout and venture funds in the top quartile remained stable at a net pooled IRR of 22.54% (22.81% in 2010). Buyout funds in the top quartile recorded 30.09% (32.2% in 2010) and venture funds in the top quartile remained constant at 13.2%.

By fund size, the best-performing funds in the buyout sample were in the €250 million ($311.7 million) to €500 million range – recording a 20.0% net return since inception.

On the venture side, funds of more than €250 million had the best result in the long-term (10-year IRR) and funds between €100 million to €250 million dominated the short-term (1-year horizon IRR of 6.78%).

In terms of vintage year, the highest returns for European private equity were achieved by the 1990-1994 vintages (15.6% IRR) and 2000-2004 vintages (12.58% IRR). By investment stage, 2000-2004 vintage buyout funds registered the best returns, with an IRR of 18.28%. The best-performing venture funds were 1990-1994 vintage, which reached a pooled net IRR of 13.11%. The best vintage year with regards to returns was 1995 at 42.72%, according to EVCA and Thomson Reuters.

This is indeed reflected in today’s slideshow in which the top fund performer this week is from a 1995 European vintage. Scroll down to take a look at the top 10 European performers in Oregon Public Employees Retirement Fund for the period 31, December 2011 which includes mainly buyout funds but does feature a token venture fund. Vintages range from 1995 to 2007.

Image credit: Stability on marble courtesy of Shutterstock

[slideshow]

[slide title=” 10. Palamon European Equity “]

Vintage: 1999

Oregon Commitment: $50 million

Distributions: $93.2 million

Multiple: 2.04x

IRR: 13.30%

[slide title=” 9. Doughty Hanson Fund III “]

Vintage: 1997

Oregon Commitment: $250 million

Distributions: $431.7 million

Multiple: 1.81x

IRR: 13.40%

[slide title=” 8. Sofinnova Venture Partners VII “]

Vintage: 2007

Oregon Commitment: $25 million

Distributions: $7.1 million

Multiple: 1.50x

IRR: 16.90%

[slide title=” 7. CVC European Equity Partners II”]

Vintage: 1998

Oregon Commitment: $150 million

Distributions: $336.5 million

Multiple: 2.31x

IRR: 18.90%

[slide title=” 6. KKR European Fund “]

Vintage: 1999

Oregon Commitment: $400 million

Distributions: $1,007.4 million

Multiple: 2.27x

IRR: 19.8%

[slide title=” 5. Hicks, Muse, Tate & Furst Europe Fund “]

Vintage: 1999

Oregon Commitment: $99.3 million

Distributions: $196.9 million

Multiple: 2.02x

IRR: 21.60%

[slide title=” 4. Lion Capital Fund I “]

Vintage: 2004

Oregon Commitment: $99.8 million

Distributions: $163.7 million

Multiple: 1.90x

IRR: 23.20%

[slide title=” 3. CVC European Equity Partners “]

Vintage: 1996

Oregon Commitment: $50 million

Distributions: $58.5 million

Multiple: 2.88x

IRR: 26.60%

[slide title=” 2. CVC European Equity Partners III”]

Vintage: 2001

Oregon Commitment: $150 million

Distributions: $391.7 million

Multiple: 2.87x

IRR: 41.40%

[slide title=” 1. Doughty Hanson Fund II”]

Vintage: 1995

Oregon Commitment: $50 million

Distributions: $93.9 million

Multiple: 2.10x

IRR: 45.60%

[/slideshow]