BOSTON - (Business Wire) State Street Corporation (NYSE:STT), one of the world’s leading providers of financial services to institutional investors, today announced the results of the State Street Private Equity Indexsm as of June 30, 2009. The index is based on the latest quarterly statistics from State Street Investment Analytics’ Private Edge® Group and includes more than 1,600 private equity partnerships with aggregate commitments of approximately $1.5 trillion. The Private Edge® Group provides detailed analyses of private equity investments for a diverse client base including public and private pensions, endowments and foundations, representing more than 5,000 commitments totaling approximately $241 billion. The Private Edge® Group has one of the most extensive and comprehensive private equity data sets currently maintained in the marketplace, including partnership information down to the portfolio company level.
The following tables depict the quarter-over-quarter internal rates of return (IRR) of the index, the end-to-end IRRs for the index across 1-, 3-, 5- and 10-year horizons as of June 30, 2009 and the long-term internal rates of return (IRR) of the index by major private equity strategy, in addition to the composition of the index:
| |
| State Street Private Equity Indexsm |
| Composition and long-term IRR as of June 30, 2009 |
| | | | | | | | | |
| Strategy | | | Number of
Funds | | | Commitments
($B) | | | Long-term
IRR % |
| Buyout | | | 769 | | | 1,127.0 | | | 9.47 |
| Venture Capital | | | 677 | | | 222.2 | | | 8.63 |
| Distressed & Mezzanine | | | 171 | | | 162.7 | | | 6.63 |
| Total | | | 1,617 | | | 1,512.0 | | | 9.08 |
| US | | | 1,319 | | | 1,168.5 | | | 9.14 |
| Europe | | | 174 | | | 270.2 | | | 11.43 |
| Rest of World | | | 124 | | | 73.3 | | | (0.06) |
| | | | | | | | | |
“After five consecutive quarters of negative returns, the State Street Private Equity Index rebounded nicely during the second quarter of 2009 posting a 5.48% return for the period,” commented William Pryor, senior vice president of State Street Investment Analytics. “All strategies and geographies were positive contributors during the quarter, with the biggest impact coming from Buyout funds and US domiciled funds,” Pryor continued. When compared to Q2 2008 quarterly return, the State Street Private Equity Index increased by 699 basis points, from -1.51%. Since inception IRR as of the end of June 2009 was 9.08%, a 69 basis points increase from Q1 2009.
Distressed Debt and Mezzanine funds posted an impressive 16.02% return for the second quarter of 2009, up more than 1400 basis points from the same quarter a year ago. Buyout funds recorded a 4.74% return for the period, an increase of 703 basis points relative to the year ago quarter. Venture fund’s return was 0.21% during the second quarter of 2009, which compares favorably to the 0.07% return posted during the same period a year ago.
Continued Pryor, “Although Venture fund’s quarterly returns continue to lag other asset classes, the significant increase in returns for non-venture strategies during the quarter was in line with the public markets rally from the March lows.”
Since inception IRR as of June 30, 2009 for the U.S. and European funds in the index was 9.14% and 11.43%, respectively. The since inception IRR for the Rest of the World funds continues to be negative at -0.06%; however, this is an increase of 391 basis points relative to the first quarter of 2009.
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $17.9 trillion in assets under custody and $1.7 trillion in assets under management at September 30, 2009, State Street operates in 27 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s web site at www.statestreet.com.
About State Street Investment Analytics (SSIA)
State Street Investment Analytics (SSIA) provides performance and analytics services through 14 offices globally and has more than 500 dedicated investment performance professionals. Offering comprehensive services in performance, compliance, risk and strategic analysis, State Street Investment Analytics is well positioned to help customers monitor and measure the success of their investment strategies in any market and asset class including alternative investments, and currently provides services for approximately 1,000 customers with asset volumes of more than $5 trillion. For more information on our services, please visit www.statestreet.com/analytics.
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