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European private equity performed well in 2007, final EVCA figures confirm24/06/2008. Source: AltAssets. 
 The European private equity industry in 2007 returned 11.8 per cent on a pooled average basis, net of management fees and carried interest, according to final performance figures for 2007 released by the European Private Equity and Venture Capital Association and compiled by Thomson Reuters.
Buy-out funds were the best performers, with a net IRR of 16.3 per cent, while venture capital (including expansion stage) funds returned 4.5 per cent.
Top quartile funds continued to produce excellent returns across both venture capital (14.9 per cent) and buy-outs (34.2 per cent).
The strongest performance was registered by funds within the $500-$1,000m bracket (21.8 per cent). For venture capital, development funds achieved the best returns (7.8 per cent), followed by balanced funds (6.8 per cent).
Ten-year investment horizon returns for all private equity funds moved from 12.9 per cent in 2006 to 11.6 per cent in 2007. Ten-year returns for the buy-out segment stood at 16.7 per cent. Venture funds also registered positive ten-year returns with 1.7 per cent.
The three-year indicators were positive for funds across all stages with an overall net return for private equity at 17.2 per cent. The five-year IRR continued its steady growth bringing returns for buy-out funds to 16.2 per cent and moving venture returns into positive territory (0.6 per cent).
Helmut Schühsler of TVM Capital and EVCA chairman 2007-2008, said, 'The performance of European funds shows that the industry, overall, and in spite of the substantial funding issues in the credit markets, has a winning proposition. The detailed analysis shows great heterogeneity in the various sub-sectors, and slight changes in performance across longer-time horizons, but we know that the industry is highly capable of adapting itself to new facts and market conditions, which allows us to look ahead with optimism. Notwithstanding the difficult environment for buy-outs in the second half of 2007, and the adverse exit market conditions for some sectors of the venture capital industry, the figures indicate that the European private equity and venture capital industry remains an attractive asset class.'
The Thomson Reuters Performance Benchmarks, compiled by Thomson Reuters in collaboration with EVCA, are based on measurements over the past 28 years.
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