Venture capital funds globally enjoyed a record 2019 with funds recording a year-on-year return increase of 10.5%.
The figures, from financial software firm eFront’s quarterly private equity performance report, show that the TVPI investment multiple rose from 1.478x in Q4 2018 to a record high of 1.632x in Q4 2019.
The report also showed that returns remained strong in Q1 2020, despite the unfolding Covid-19 crisis.
Meanwhile, risk decreased, with the TVPI spread between best and worst performing funds falling to 1.721x in Q1 2020, down from 1.932x in Q3 2019.
Average time-to-liquidity stabilised in 2019 at around 3.5 years, but the “challenging conditions of 2020 are expected to accentuate the trend of longer holding periods”.
The vintage year 2012 stands out as the best performer in recent years in both the US and Western Europe, with a TVPI of more than 2.0x in both regions.
