Private Capital Maintains Steady Performance, but Venture Capital Funds Post a Sixth Consecutive Quarterly Decline

 

On September 23, the Burgiss Manager Universe (BMU) was updated to include Q2 2023 results. The final tally includes over 13,000 funds and represents more than $10 trillion in committed capital across the full spectrum of private capital strategies.

The BMU provides policy benchmarks for leading private capital investment programs; powers the Universe Data and Analytics module within the Private i Platform; and underpins proprietary and commercial risk models. Download the Burgiss Manager Universe dataset summary here.

 

Highlights from the Q2 2023 BMU update:

  • The Global Private Capital Funds Index was up 1.4% during Q2 2023, with the Global Private Debt Funds Index posting a 2.4% quarterly return.

  • The Global Buyout Funds Index was up 2.8% while the Global Venture Capital Funds Index declined 1.0%—its sixth consecutive quarterly decline. The broader Global Private Equity Funds Index was up 1.6% during the quarter.

  • The Global Infrastructure Funds Index (up 1.5%) continued to outperform both the Global Real Estate Funds Index (down 0.7%) and the Global Natural Resources Funds Index (up 0.7%).

  • Distributions remain quiet. For the Global Private Capital Funds Index, the distribution rate was just 14% of valuation in 2022 and then fell below 10% for the first two quarters of 2023; historically, this rate has been 20–30% annually.

  • At quarter end, Dry Powder had risen to $1.89 trillion and remains near its all-time high of $1.93 trillion (reached during Q3 2022).

  • The valuation of the Global Private Capital Funds Index increased by $123 billion over the first six months of 2023 and ended at just shy of $5 trillion.

Join us on Wednesday, September 27, at 10 AM ET as we conduct a walkthrough of the Q2 2023 Global Private Capital Performance Report.

 
Ruby Atwal