Key Takeaways
- • Financials delivered the strongest one-year private equity sector return in the US at 19.2% for calendar 2025, versus 8.4% for the HarbourVest US Buyout Benchmark, according to HarbourVest Partners.
- • Information Technology led outside the US in 2025, with 23.1% returns in Global ex-US Buyouts and 20.8% in Europe Buyouts.
- • Software & Services posted a 22.7% annualized return over 10 years, the top long-term performer within Information Technology, and the sector led the 10-year rankings for US and Global buyouts.
- • The Consumer sector trailed aggregate benchmarks in most one-, five- and ten-year periods, reflecting persistent headwinds.
- • HarbourVest's Global Buyouts portfolio is far less concentrated than public indices: top 10 holdings represent about 4.0% of benchmark value versus 24.71% for MSCI ACWI and roughly 40.93% for the S&P 500.
Summary
HarbourVest Partners, a Boston-based private markets investment firm, published new sector benchmark data showing Financials delivered the strongest one-year private equity sector return of 19.2% in calendar 2025, significantly ahead of the 8.4% aggregate HarbourVest US Buyout Benchmark return. Sofia Gertsberg, Managing Director and Head of Quantitative Investment Science, attributed the US Financials performance to favorable interest rate dynamics, resilient earnings growth, and continued consolidation opportunities across several subsectors.
Outside the US, Information Technology was the top-performing sector in 2025, returning 23.1% in Global ex-US Buyouts and 20.8% in Europe Buyouts. Over longer horizons, Information Technology remained a standout, posting the highest ten-year returns for US and Global buyouts, while Industrials was Europe's longer-term outperformer. Within technology, Software & Services generated a 22.7% annualized return over the past decade, ahead of Insurance (21.6%), Telecommunication Services (21.4%), Capital Goods (20.7%) and Commercial & Professional Services (20.4%). Technology Hardware and Equipment led near-term returns with 36.2% one-year gains, against 12.2% for the Global Buyouts aggregate.
Scott Voss, Chief Market Strategist at HarbourVest, cautioned that investors must look beyond sector labels, noting that AI is changing the underwriting question from whether software is attractive to which software assets gain or lose value amid AI disruption. The Consumer sector, by contrast, has faced persistent headwinds.
The data also highlight portfolio composition differences between private and public markets. As of December 31, 2025, Global Buyouts were overweight Health Care (about 16% of the benchmark versus 9% in MSCI ACWI) and Industrials (17% versus about 11%), and underweight Financials, Communication Services and Energy. Buyout portfolios favored software over chips and hardware within technology, and services-oriented companies within Industrials. HarbourVest's benchmarks draw on a proprietary dataset of more than 66,000 investments representing over $3.8 trillion of invested capital as of year-end 2025. Returns are gross of fees and carried interest, and HarbourVest cautions that the benchmarks are based partly on its own valuation estimates and that past performance is not indicative of future results. HarbourVest reported $161 billion in assets under management as of December 31, 2025.
Outside the US, Information Technology was the top-performing sector in 2025, returning 23.1% in Global ex-US Buyouts and 20.8% in Europe Buyouts. Over longer horizons, Information Technology remained a standout, posting the highest ten-year returns for US and Global buyouts, while Industrials was Europe's longer-term outperformer. Within technology, Software & Services generated a 22.7% annualized return over the past decade, ahead of Insurance (21.6%), Telecommunication Services (21.4%), Capital Goods (20.7%) and Commercial & Professional Services (20.4%). Technology Hardware and Equipment led near-term returns with 36.2% one-year gains, against 12.2% for the Global Buyouts aggregate.
Scott Voss, Chief Market Strategist at HarbourVest, cautioned that investors must look beyond sector labels, noting that AI is changing the underwriting question from whether software is attractive to which software assets gain or lose value amid AI disruption. The Consumer sector, by contrast, has faced persistent headwinds.
The data also highlight portfolio composition differences between private and public markets. As of December 31, 2025, Global Buyouts were overweight Health Care (about 16% of the benchmark versus 9% in MSCI ACWI) and Industrials (17% versus about 11%), and underweight Financials, Communication Services and Energy. Buyout portfolios favored software over chips and hardware within technology, and services-oriented companies within Industrials. HarbourVest's benchmarks draw on a proprietary dataset of more than 66,000 investments representing over $3.8 trillion of invested capital as of year-end 2025. Returns are gross of fees and carried interest, and HarbourVest cautions that the benchmarks are based partly on its own valuation estimates and that past performance is not indicative of future results. HarbourVest reported $161 billion in assets under management as of December 31, 2025.
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