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Global Fund Performance Report (as of Q3 2021 with preliminary Q4 2021 data)


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
  • 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