State Street Investment Analytics Announces Private Equity Index Results for Fourth Quarter of 2009
BOSTON – State Street Corporation (NYSE:STT), one of the world’s leading providers of financial services to institutional investors, today announced the results of the State Street Private Equity IndexSM as of December 31, 2009. The index is based on the latest quarterly statistics from State Street Investment Analytics’ Private Edge® Group and includes 1,717 private equity partnerships with a total fund size of $1.6 trillion.
For the quarter ended December 31, 2009, the index posted a 5.94% quarterly return, a slight increase from the third quarter return and 2,226 basis points higher than the return recorded in the fourth quarter of 2008.
“Over the course of 2009, we witnessed fewer deals and a drop in fund raising activity in the Private Equity industry,” commented Bill Pryor, senior vice president of State Street Investment Analytics. “However, Private Equity has since made a major comeback in the second half of 2009, finishing the year with all major fund categories posting positive returns over one-, three-, and five-year time horizons.”
From 2008 to 2009, all Private Equity sectors posted a 15.0% one-year end-to-end return, after five consecutive quarters of negative returns. It is also worth noting Mezzanine and Distressed Debt funds recorded 35.3% return for one-year investment time period.
The since inception Internal Rate of Return (IRR) as of the fourth quarter of 2009 was 11.42%, an increase of 139 basis points from the prior quarter. The European and the Rest of World regions were 14.91% and 5.09%, respectively, with the latter showing an increase of more than 250 basis points from the prior quarter.
Street Private Equity IndexSM : All Private Equity
Street Private Equity IndexSM : All Private Equity:
Trailing Internal Rates of Return (IRR) as of December 31, 2009
State Street Private Equity IndexSM: Composition and Long Term IRR
The Private Edge Group provides detailed analyses of private equity investments for a diverse client base including asset managers, public and private pensions, endowments and foundations, representing nearly 6,000 commitments totaling $200 billion. The Private Edge Group has one of the most extensive and comprehensive private equity data sets currently maintained in the marketplace, including partnership information down to the portfolio company level.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $19 trillion in assets under custody and administration and $1.9 trillion in assets under management at March 31, 2010, State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s web site at www.statestreet.com.
About State Street Investment Analytics (SSIA)
State Street Investment Analytics (SSIA) provides performance and analytics services through 14 offices globally and has more than 500 dedicated investment performance professionals. Offering comprehensive services in performance, compliance, risk and strategic analysis, State Street Investment Analytics is well positioned to help customers monitor and measure the success of their investment strategies in any market and asset class including alternative investments, and currently provides services for approximately 1,100 customers with asset volumes of more than $6.5 trillion. For more information on our services, please visit www.statestreet.com/analytics.