Fund values increase slightly in Q2

Aggregate fund values were written up an average of .65% in the second quarter, the fifth consecutive quarter of increasing fund valuations, according to State Street.

Average private equity fund valuations were written up by .65 percent in the second quarter of 2010, according to statistics from the State Street Private Equity Index.

The slight uptick in average fund valuations marks the fifth consecutive quarter of positive returns, prior to which the asset class saw five straight quarters of valuation drops. While the Q2 return remains in the positive column, it is the most meager recorded in the previous five quarters, the highest of which came in Q4 2009, at 5.95 percent. 

The State Street Private Equity Index tracks more than 1,800 private equity funds, largely from the 1990 vintage until the present, on a dollar-weighted basis, meaning that larger funds with a disproportionate amount of investor capital under management represent an equally disproportionate share of the performance in the index.

The “since inception” IRR as of 30 June was 11.0 percent, a slight decrease from Q1 2010.

The first quarter of this year saw an average fund valuation change of 2.22 percent, according to State Street.