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 27 companies with 94 funds participated in the performance measurement survey in 2020.
The 2020 survey shows stable performance with 16.1% since-inception IRR as of 2020 for the funds in 2009 to 2017 vintage years. The horizon IRR in the last 5 years (2016-2020) and 10 years (2021-2020) until 2020 are 10.8% and 15.2% respectively, which shows the investment performance for Japanese private equity funds outperformed the market returns with 5.5% and 9.6% 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.