The Japan Private Equity Association launched a joint project with PwC Aarata LLC in 2016 to build a database of fund performance in response to the long-awaited indicators of private equity fund performance in Japan.
We are pleased to announce the release of our 2019 performance research report which includes the data on a total of 27 members / 88 funds, an increase by 2 members / 5 funds from the previous year when we started the release of our research report.
In terms of the annualized internal rate of return (IRR) up to the end of 2019 for all funds surveyed, the performance has been stable at 12.07% over three years (2017-2019), 10.50% over five years (2015-2019) and 13.43% over 10 years (2010-2019). We found that, in the same period the performance of the market index (TOPIX Dividend Index) was 6.65%, 6.40% and 8.93% respectively and these results indicate that private equity funds in Japan have outperformed the market average performance.
This time we have also released the data on each vintage IRR and TVPA. For more information on the study’s methodology, companies participating and other consideration points, please refer to the report.
The Japan Private Equity Association will continue to collect data and increase the number of participants to create an environment that will help further encourage public pensions and institutional investors to allocate their capital to private equity assets. We aim to expand investments in Japan private equity funds and also to be recognized as one of the most attractive asset classes in Japan.