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 started the release of our performance measurement survey report since 2018 and 32 companies with 119 funds participated in the performance measurement survey in 2021.
The 2021 survey shows stable performance with 17.6% since-inception IRR as of 2021 for the funds in 2009 to 2018 vintage years. The horizon IRR in the last 5 years (2017-2021) and 10 years (2012-2021) until 2021 are 10.5% and 22.2% respectively, which shows the investment performance for Japanese private equity funds outperformed the market returns with 8.0% and 13.0% in the comparative periods for 5 years and 10 years respectively measured by TOPIX Total Return Index.
For more information on the study’s methodology, companies participating and other consideration points, please refer to the survey 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.