Report: Only top 5% of private-equity funds meet expectations

[SINGAPORE] Only the top 5 per cent of private-equity (PE) funds consistently meet investor expectations, while the rest generally underperform.

The gap between expectations and returns is also particularly pronounced among emerging-market funds.

These are the conclusions that can be drawn from the latest report out from Pevara, the PE portfolio analysis unit of alternative investments software provider eFront, and graduate business school Insead. Their latest joint quarterly report, Private Equity Navigator, is based on an analysis of all actual capital called and distributed by more than 2,300 PE funds around the world, as well as on data on flows sourced directly from limited partners (LPs).