- By year nine, the median fund had generated 96% of its total gain when measured by Total Value to Paid-in-Capital (TVPI) and had generated 80% of its distributions.
- There was no statistically significant evidence that venture funds behaved differently than buyout funds, although the degree of dispersion in the TVPI profiles was greater for venture funds.
- The results were generally not skewed by any specific vintage or associated market conditions.
- Lower-quartile funds funds in the study (compared to top and second quartile funds) were late bloomers, and more of the total value creation and distributions occurred later than the top and second quartile funds.
This is a very good research effort, and I recommend it.
Link to Pantheon's website: http://www.pantheon.com/
Link to the study page: http://www.pantheon.com/news-publications/534-replicating-investment-strategy
Link to the study .pdf: http://www.pantheon.com/images/stories/pdfs/residual_value_in_mature_private_equity_funds.pdf