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Private Equity

(France Invest and EY study) - Private Equity outperforms other asset classes over the long term

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Private Equity

(France Invest and EY study) - Private Equity outperforms other asset classes over the long term

Published on

10/7/2023

Amended on

26/3/2024

minute(s)

In its latest report on the performance of French Private Equity, France Invest reveals that Private Equity offered an average annual return of 14.2% over 10 years, outperforming the CAC 40, real estate and hedge funds. Despite the uncertainty of 2022, short-term returns remain high.

Damien Hélène

This article has been automatically translated. Please excuse any inaccuracies or translation errors.

In its latest report on the "net performance of French Private Equity players", France Invest, in collaboration with EY, unveils the latest figures for the French Private Equity market.

Private Equity delivered an average 14.2% net return/year over 10 years between 2013 and 2022, ahead of the CAC 40 (10.4%), real estate (5.6%) and hedge funds (2.7%).

"Over the long term, French Private Equity returns are high, above 12% net per annum. Despite a more uncertain economic environment in 2022, short-term performance remains high (15.2% over a 3-year horizon)," notes the report.

Performance of top-performing funds

75% of the capital called in achieves a net IRR of over 6. 0% and a multiple of over 1.2x. The best-performing funds (top quartile) achieve an average IRR of 25.7% and a multiple of 2.4x.

50% of capital achieves a multiple greater than 1.4x. Funds achieving a multiple of less than 1.0x account for only 15% of capital raised.