US VENTURE TURNS THE CORNER

According to US performance numbers for 2003 released by Thomson Venture Economics and the National Venture Capital Association, one-year returns for the entire private equity asset class came in at a healthy 18.3 percent. Buyouts posted a 24.1 percent year-end result, and venture capital jumped back in the black with 8.10 percent. After three years of negative returns, acquisition and exit markets are finally strengthening, with a marked revival in initial public offerings that up until recently had been virtually closed off to entrepreneurs and private equity investors.

INVESTMENT HORIZON PERFORMANCE THROUGH 12/31/2003

Fund Type 1 Yr 3 Yr 5 Yr 10 Yr 20 Yr
Early/Seed VC -7.0 -23.3 54.9 37.0 19.1
Balanced VC 11.0 -13.9 19.4 20.4 13.3
Later Stage VC 25.4 -18.8 3.5 17.0 13.8
All Venture 8.10 -18.9 22.8 25.4 15.5
All Buyouts 24.1 -2.1 2.2 7.8 12.4
Mezzanine 5.7 1.1 5.6 7.3 9.6
All Private Equity 18.3 -7.0 6.8 12.7 13.6
NASDAQ 50.0 -6.7 -1.8 9.9 12.4
S & P 500 26.4 -5.6 -2.0 9.1 12.9