In this article, you will find the key points of the 30th edition of the annual study on the net performance of French private equity players, carried out by France Invest and EY.
Firstly, private equity performance remains high in the short, medium and long term, despite macroeconomic adjustments since 2022. Liquidated funds returned 1.87 times their initial investment to their investors.
Furthermore, private equity consistently outperforms other asset classes, including strong-performing public markets such as the CAC 40 and the CAC All-Tradable. Thus, over a 10-year period, the IRR for French private equity stands at 13.3% per year, compared to a return of 11.5% per year for the CAC 40 and 9.0% for the CAC All-Tradable.
The fully exited funds generated a IRR of 14.5% per year with an investment multiple of 1.87x, net of management fees and carried interest
Finally, there was a slight drop in performance, but it was still maintained:
- 11.7% since inception (vs. 12.1% in 2022)
- 13.3% over 10 years (vs. 14.1% in 2022)
- 13.4% over 3 years (vs. 15.2% in 2022)
The study covers the net performance of 1,079 private equity and infrastructure funds as of the end of 2023, including more than 1,000 vehicles managed by 165 asset management firms. The Internal Rate of Return (IRR) is used as the primary performance metric, taking into account capital calls, distributions, and net asset value (NAV).
French private equity has maintained high performance, outperforming other asset classes, thanks to value-creation strategies and effective management through economic cycles.
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