Overview of PitchBook Fund Returns Data
PitchBook’s fund returns data is sourced primarily from individual LP reports, providing a baseline for estimating activity across entire funds. The return profiles vary among LPs due to factors like fee discounts, commitment timing, and co-investments. This granularity offers valuable insights to industry practitioners but requires addressing discrepancies in calculating fund-level returns.
Inclusion Criteria for Fund Returns Data
To be part of pooled calculations, a fund must have at least one LP report within two years of its vintage and LP reports in at least 45% of applicable reporting periods. Addressing discrepancies among multiple LPs reporting, PitchBook Benchmarks determine returns based on data from all LP reports in a period. For periods lacking an LP report, a straight-line interpolation calculation is used to fill missing data.
Expansion of Dataset and Inclusion Criteria Updates
Starting with PitchBook Benchmarks as of Q4 2019, the dataset expanded to include funds with reported IRR, even if the fund’s cash flow data doesn't meet pooled calculation criteria. In Q2 2021, improvements were made to the inclusion criteria for reported IRRs, leading to shifts in vintage year data counts compared to previous reports.
Handling Lag in Reporting and Liquidation
Due to reporting delays and liquidation of older funds, PitchBook extends cash multiples and IRR information under specific stipulations. For funds older than five years with reported NAV less than 5% of commitments, cash multiples and IRR are extended after five years since fund inception. If NAV is unknown or greater than 5% after five years, these metrics are extended for funds older than eight years from the final known data.
Consistency and Updates in PitchBook Reports
PitchBook aims to maintain consistency across benchmarking and fund performance reports. Fund classifications may change, and new funds are added to the dataset as more information is gathered. All returns data is net of fees and carry in these reports.
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