French private equity performance

French private equity performance

The study on the net performance of French private equity is carried out by France Invest in partnership with EY.

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See all the studies on French private equity performance

Methodology and definitions of performance study

France Invest and EY have been working together since 1994 to measure the profitability of French private equity through a study on net performance. This study, carried out in accordance with the European methodology, has been based on a significant sample of private equity companies and funds since 1987.

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The net performance at the end of the period is calculated on a daily basis and includes all flows (calls for funds and distributions) of all mature funds (more than two years old) as well as the residual value of the portfolio measured at 31 December. The population studied is therefore reduced. Performance is calculated after deduction of management fees and carried interest.
The net IRR presented is calculated on a comparable basis of funds. As a result, current figures differ from those reported in the previous study due to consideration of the performance of new responding funds.

The IRR is the discount rate that makes the net present value of a series of financial flows equal to zero.

The net internal rate of return (“Net IRR”) is also called investors’ internal rate of return, as it measures the net performance of an underwriter on its investment in a private equity vehicle (venture capital funds, venture capital companies, limited partnerships, etc.). It takes into account the negative flows relating to successive calls for funds and the positive flows linked to distributions (in cash and sometimes in securities), as well as the net asset value of the shares held in the vehicle on the calculation date. The IRR is net of management fees and carried interest. It includes the impact of cash, the time effect and the portfolio’s estimated value.

The information contained in the above publications comes from data provided by the active members of France Invest, in particular via the single European Data Cooperative (EDC) private equity data collection platform. France Invest cannot guarantee the accuracy of the information collected.

Neither France Invest nor any of the persons who contributed to the preparation of this document may be held liable for decisions or acts carried out on the basis of the information contained in these publications.

France Invest’s publications may not be reproduced for commercial purposes without its agreement.