What ails European Venture?
At the TechVenture Asia conference, I picked up these depressing statistics:
The data comes from Cambridge Associates who have also included their data from 2004 to get a sense of perspective:
From Cambridge Associates’ 2004 report: “In aggregate, the historical performance of private equity partnerships in Asia has been disappointing…Asia remains a region of greater potential than of actual opportunities for private equity investors, but that potential is gradually becoming more tangible, less will-o’-the-wisp and merits close attention in light of the regions dynamic growth prospects…”
Mean End-to-End Performance as of 31 March 2004*
|
One Year |
Three Years |
Five Years |
Ten Years |
|
| U S Venture Capital |
3.03% |
-19.62% |
46.36% |
38.57% |
| U S Private Equity |
27.91% |
3.86% |
5.04% |
11.06% |
| European Venture Capital |
-4.44% |
-19.59% |
-3.51% |
6.00% |
|
European Private Equity |
27.98% |
16.68% |
14.62% |
16.25% |
| Asian Venture Capital & Private Equity combined |
22.96% |
-0.14% |
1.38% |
0.49% |
Things have obviously come a long way since then for Asia…here are the updated performance figures for 2006:
Mean End-to-End Performance as of 31 March 2006*
|
One Year |
Three Years |
Five Yrs |
Ten Years |
|
| U S Venture Capital |
13.8% |
9.9% |
-6.5% |
39.5% |
| U S Private Equity |
31.8% |
27.3% |
12.2% |
13.4% |
| European Venture Capital |
1.9% |
-1.0% |
-9.0% |
0.8% |
| European Private Equity |
31.5 |
30.2% |
22.3% |
20.9% |
| Asian Venture Capital & Private Equity combined |
24.4 |
20.8 |
7.0% |
4.7% |
* Pooled end-to-end mean return net of fees, expenses and carried interest as calculated by Cambridge Associates
Whats dragging European venture down?
