Europe private equity returns outstrip FTSE 100

EUROPEAN private equity returns for 2012 have topped FTSE 100 figures, but could not match profits from the Stoxx 600 over the year.

Figures from Thomson Reuters’ Private Equity Performance Index found that, for the period ending 31 December last year, returns for all private equity beat the FTSE 100 over one, 10 and 20-year time frames.

However, private equity returns of 15.02 per cent could not match the stellar 18.68 per cent return for the year from the European benchmark index.

The index is based on quarterly statistics from over 1,533 European venture capital and private equity partnerships with a capitalisation of $500.9bn.

Thomson Reuters said one-year returns increased 4.23 percentage points from June 2012 for venture capital funds, reaching 11.12 per cent, and rose 11.6 percentage points for buyout funds, ending at 16.1 per cent.

The survey found European private equity performance had gone up across the board, except for in the three-year horizon, compared to June 2012.

Despite the apparent growth within the sector, the private equity industry has been found to be falling behind the legal sector and commercial insurers on reputational issues. A study of 300 global investors by Gracechurch Consulting found the popularity of private equity partners has fallen since 2010.