Key Takeaways
- • Francisco Partners ranked first, Genstar Capital Partners second and Vitruvian Partners third in the 2020 HEC-DowJones Private Equity Performance Ranking, according to a Business Wire release from HEC Paris Business School.
- • The ranking analysed 529 PE firms and 977 funds raised over a ten-year period, covering buyout funds raised between 2007 and 2016, with aggregate equity volume of $1.4tr.
- • The study, led by Professor Oliver Gottschalg of HEC Paris, found the average amount raised by the Top 5 firms from 2007 to 2016 was just over US$4B, below the just over US$5B average of the 2013 Top 5 for vintages 2000-2009.
- • Last year's top three were Thoma Bravo, Clayton Dubilier & Rice and Genstar Capital Partners, indicating meaningful turnover at the top of the ranking.
Summary
Francisco Partners, Genstar Capital Partners and Vitruvian Partners secured the top three positions in the 2020 HEC-DowJones Private Equity Performance Ranking, the 11th edition of the annual study published by HEC Paris Business School and Dow Jones. The ranking seeks to answer the question of which private equity firms performed best for their investors, measuring aggregate performance across all buyout funds raised between 2007 and 2016.
The study analysed performance data from 529 PE firms and the 977 funds they raised over the ten-year period, which together represent an aggregate equity volume of $1.4tr, according to the release. The analysis was led by Oliver Gottschalg, Professor of Strategy and Business Policy at HEC Paris Business School. Data was drawn from Preqin and directly from PE firms, and the methodology aggregates performance across vintage years while considering both relative and absolute returns.
In commenting on the results, Professor Gottschalg noted that the top performers confirm the strong positioning of many tech-focused firms seen in prior years. He also observed that fund size discipline appears to improve the odds of making the list, although it is neither necessary nor sufficient for success. The average amount raised by the Top 5 firms in the 2020 ranking was just over US$4B, lower than the just over US$5B average for the Top 5 in the 2013 ranking, which covered vintages 2000-2009, even as the industry grew substantially over that period.
Last year's Top 3 were Thoma Bravo, Clayton Dubilier & Rice and Genstar Capital Partners. Genstar thus retained a top-three position while the leading spot changed hands.
The study analysed performance data from 529 PE firms and the 977 funds they raised over the ten-year period, which together represent an aggregate equity volume of $1.4tr, according to the release. The analysis was led by Oliver Gottschalg, Professor of Strategy and Business Policy at HEC Paris Business School. Data was drawn from Preqin and directly from PE firms, and the methodology aggregates performance across vintage years while considering both relative and absolute returns.
In commenting on the results, Professor Gottschalg noted that the top performers confirm the strong positioning of many tech-focused firms seen in prior years. He also observed that fund size discipline appears to improve the odds of making the list, although it is neither necessary nor sufficient for success. The average amount raised by the Top 5 firms in the 2020 ranking was just over US$4B, lower than the just over US$5B average for the Top 5 in the 2013 ranking, which covered vintages 2000-2009, even as the industry grew substantially over that period.
Last year's Top 3 were Thoma Bravo, Clayton Dubilier & Rice and Genstar Capital Partners. Genstar thus retained a top-three position while the leading spot changed hands.
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