ILPA: secondaries returns picked up in Q1

Secondaries have under-performed the All Funds index across all timeframes under review, according to the LP association.

Returns for secondaries funds were up in the first quarter of this year amid a mixed picture for private asset classes, according to data from the Institutional Limited Partners Association.

The ILPA Secondaries Benchmark delivered a return of 3.1 percent in the three months to 31 March, compared with 1.9 percent in the final quarter of last year.

Of the 10 benchmarks under analysis, six produced better returns in the first quarter of 2017 than the previous one. The biggest riser was Asia/Pacific PE and VC which realised a net internal rate of return of 4.8 percent compared with 0.9 quarter-on-quarter.

The biggest decline was euro-denominated Europe PE and VC benchmark which declined to 3 percent from 8.1 percent.

The pooled net IRRs for secondaries across a quarterly, yearly, three-year, five-year and 10-year horizons were all lower than the ILPA All Funds Index, which benchmarks all strategies.

Secondaries have performed best across a five-year period, accruing an IRR of 10.1 percent.

The ILPA data is based on returns for 3,673 funds as of 8 August 2017.