Corrections strongest in growth, VC strategies

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PitchBook’s latest Quantitative Perspectives Report, available for free here, found a strong run-up in five strategies since 2019. The strongest surge was among PE growth funds, where hypothetical growth more than doubled between Q1 2020 and Q4 2021. $100 invested in 2007 would have equated to roughly $420 by the COVID outbreak. From there, though, the same $100 would have ballooned to almost $970 by the end of 2021. While PE growth’s increase was one of the sharpest among closed-end strategies, so was its correction. By September 2022, its hypothetical value declined to $887, a 9% dip in the span of three quarters. The only other asset class to experience the same roller coaster was venture, though it never reached the heights of the PE growth market. After topping out at $817 in Q4 2022, the same $100 investment fell to $674 by Q3 2022, a 17% decline.

Our analysis found resiliency among other asset classes. Buyout strategies haven’t lost much ground, and secondaries, FoF and Infrastructure strategies continue to climb.

The report, with more than 70 more pages of additional data and context, includes NAV and AUM growth forecasts, unicorn birth rates and exit statistics across multiple asset classes.

(Past performance is no guarantee of future results.)