Private Equity Performance Q3 '05

Long-term private equity performance remained strong in Q3 2005, with 20-year returns of 16.5% for venture capital and 13.3% for buyouts. Short-term returns showed more volatility, with one-year venture capital returns jumping from 7.8% to 19.7%. The report cautions against focusing too much on short-term fluctuations and emphasizes the importance of long-term, 10-20 year returns. While increased IPO and acquisition activity in Q3 benefited short-term returns, five-year venture capital performance remained negative at -9.3% due to losses from post-Internet bubble investments.