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  "documentTitle": "Global Private Equity Report 2016",
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  "notes": "Page 30 of the report. Includes technical notes on methodology and data sources.",
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      "text": "The returns of post-crisis fund vintages are beginning to pull away from the public markets' performance.",
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      "text": "Internal Rate of Return (IRR): 24%",
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      "text": "The rebound in returns has been met with LPs' renewed enthusiasm and belief in PE. In a recent poll by Preqin, LPs overwhelmingly said that PE had met or exceeded their expectations and that positive sentiment for this asset class has been strengthening in recent years (see Figure 1.30). In mid-2014, for example, just 12% of surveyed LPs reported that PE had exceeded their expectations—about the same percentage as those who said PE had disappointed. A year later, 35% of LPs said that PE had exceeded expectations, nearly triple the number who said PE had fallen short. That bullishness for PE also shows up in LPs' expectations for future performance. Just more",
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      "text": "While market recovery has led to a general uptick in returns of funds since the 2005 and 2006 vintages that bore the brunt of the economic downturn, returns data for the 2008 and 2009 vintages now coming to fruition suggests that PE performance is again beginning to pull away from the performance of public markets. Top-quartile funds have widened their lead in returns by an even greater margin (see Figure 1.29).",
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      "text": "Comparing successive buyout vintages between 2006 and 2008 reinforces the conclusion that fund returns are trending higher over time. The median IRR, both realized and unrealized, of all three fund vintages took a big hit when the markets tanked from late 2007 through the end of 2008, as GPs wrote down the net asset values of holdings in their portfolios. And all have recovered with the strengthening of public equities markets by the end of 2010. Yet the strength of their rebound followed different trajectories. The median IRR of the 2006 vintage buyout funds was up to 9% by the middle of 2015, while the 2007 funds rose to 10%. Meanwhile, the median IRR of the 2008 funds climbed to 12%. Median top-quartile fund returns followed much the same track—up to 17% for the 2006 vintage, 20% for the 2007 vintage and 24% for the 2008 vintage.",
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      "text": "Notes: Europe includes developed economies only; vintage year is determined by year of fund's first cash flow; vintages after 2008 are excluded because they have relatively few investments and realizations; the Cambridge Associates mPME is a proprietary private-to-public comparison methodology that evaluates what performance would have been had the dollars invested in PE been invested in public markets instead; the public index's shares are purchased and sold according to the PE fund cash-flow schedule. Source: Cambridge Associates",
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      "text": "Figure 1.29: The returns of post-crisis fund vintages are beginning to pull away from the public markets' performance",
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