ILPA: Europe drives strong private market returns in Q2

European PE & VC and secondaries were the standout performers in ILPA's quarterly analysis of net internal rates of return.

Private market returns were up in the second quarter of 2017 compared with the one before, driven by the strong performance of European private equity and venture capital, according to data from the Institutional Limited Partners Association.

The ILPA All Funds benchmark, which tracks the pooled net internal rate of return of 10 private markets benchmarks, returned 4.26 percent in the second quarter compared with 3.69 percent the one before.

Of the 10 benchmarks under analysis, five produced better returns in the second quarter of 2017 than the first. The biggest riser was Europe PE & VC, which realised a net internal rate of return of 12.6 percent in US dollar terms compared with 4.41 percent in the last quarter.

The ILPA Secondaries Benchmark also performed strongly, returning 4.96 percent in the three months to 31 June compared with 3.1 percent in the previous quarter.

The only fund type to post a negative internal rate of return was Natural Resources, which registered -0.83.

The ILPA data is based on returns for 3,782 funds as of 16 November 2017.