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Opalesque Industry Update - eFront, the leading financial software and solutions provider dedicated to private markets, and a part of BlackRock, has released its latest eFront Insight Quarterly Performance Benchmark report, covering the period to the end of Q3 2022. The report shows that in the first three quarters of 2022, returns for private markets dropped to below zero for the first time since the outbreak of the Covid-19 pandemic in Q1 2020. In Q3, global buyout funds fell by -2.4%, following losses of -1.2% and -3.7% in the first and second quarters respectively. Global venture capital investments lost -2.3% of their value, following even larger drops of -4.4% in Q1 and -8.6% in Q2 (Figure 1).
After the initial shock brought on by the Covid-19 pandemic, the private equity market bounced back to multi-year highs for a sustained period. The end of 2021 saw a return to historical averages, however, in Q1 2022, in part as a result of the shock to markets in the wake of Russia's invasion of Ukraine, returns slumped. As of Q3 2022, the private equity segment is delivering negative returns for the third consecutive quarter. Relatively better returns of natural resources and infrastructure investments mitigated the overall performance of private markets in the first three quarters of 2022. Press release For the full report, click here: Article source - Opalesque is not responsible for the content of external internet sites |
Industry Updates
Returns for private markets dropped to below zero in first three quarters of 2022
Thursday, March 16, 2023
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