Understanding historic IRR by time horizon within the private markets through Q1 2020

• In the most recent quarter, all strategies have had a negative IRR due to the impact of COVID-19 on portfolios.
• Over longer time horizons, private equity has strongly outperformed all other strategies. Even when all strategies suffered due to the pandemic, private equity managed to have the lowest impacted return. Specifically, in year 1, private equity was the only strategy to have a positive return.
• Due in part to the long term nature of the asset class, private markets generally tend to be less volatile and generate higher returns than public markets, even when faced with extreme market conditions. This is evident in each time horizon as the private strategies generate a higher IRR compared to the MSCI World index.

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