State Street Global Exchange Private Equity Index Decelerated to a 3.03 Percent Return in Third Quarter 2018

Thursday, February 14, 2019 4:52 pm EST



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BOSTON, February 14, 2019 The State Street Global Exchange Private Equity Index (GXPEI) posted a moderate increase of 3.03 percent in the third quarter of 2018. The Venture Capital category continued to lead for the third quarter in a row with a 4.65 percent gain, followed by Buyout Funds with 2.84 percent; Private Debt lagged behind with a 1.34 percent return for the quarter.

The PEI is based on directly-sourced limited partnership data and represents around $2.8 trillion in private equity investments, with more than 2,900 unique private equity partnerships, as of September 30 2018.  

“2018 is on course to set the highest post-crisis fundraising records,” said Anthony Catino, managing director, Alternative Investment Solutions for State Street. “In the first three quarters of 2018, Venture Capital and Private Debt surpassed their post-crisis fundraising peaks in 2017. The US and ‘Rest of the World[1]’ focused funds met or were above their 2017 fundraising level, while European funds continue to lag behind.”

Additional Third Quarter GXPEI Highlights Include:


    • Venture Capital funds outperformed the three main private equity strategies (Venture Capital, Buyout, and Private Debt) for the third quarter in a row, and the 4.65% return was the highest for Venture Capital funds since Q4 2014.


    • Both Private Debt and Buyout saw a decrease in quarterly returns: Private Debt fell to 1.34% from 1.90% in Q2, posting the lowest returns for the strategy since Q1 2016; Buyout funds fell to 2.84%, down from 4.18% in Q2. Venture Capital returns of 4.65% were close to levels in Q2.


    • US focused funds outperformed other regions though growth was slower than the previous quarter.
                ○  US focused PE funds returned 3.69% for Q3 2018, down
                    from 4.70% in the previous quarter.
                ○  European-focused private equity funds experienced a
                    0.98% quarterly gain down from 3.12% in the previous
                ○  Funds focusing on the rest of the world returned 2.28%,
                    up from 1.66% in Q2.


    • Among sectors, Information Technology funds led for the third straight quarter with a 5.91% quarterly return, slightly down from 7.05% in Q2. These were followed by Health Care funds with a 4.59% quarterly return, up from 4.24% in the previous quarter, and Energy funds with a 3.94% quarterly return, down from 4.62% last quarter.


“In the third quarter of 2018, we saw much of the momentum from Q2 carry over with US and Venture Capital funds continuing to outperform. However, we also saw Buyout and European Funds quarterly returns fall to nearly their lowest levels in two years due to strong headwinds from factors including, rising interest rates, a stronger US dollar and intensifying trade wars,” said Will Kinlaw, senior managing director and global head of State Street Associates®, a division of State Street Global Exchange. “It is a challenging situation for many General Partners with increasing inflows to deploy capital effectively in such a precarious environment.”

For additional insights, or to learn more about the GX Private Equity Index please visit


Index returns reflect capital gains and losses, income, and the reinvestment of dividends.


It is not possible to invest directly in an index. Index performance does not reflect charges and expenses associated with the fund or brokerage commissions associated with buying and selling a fund.


Index performance is not meant to represent that of any particular fund.


About State Street Corporation

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 $31.62 trillion in assets under custody and administration and $2.51 trillion* in assets under management as of December 31, 2018, State Street operates in more than 100 geographic markets worldwide, including the US, Canada, Europe, the Middle East and Asia. For more information, visit State Street’s website at


*This figure is presented as of December 31, 2018 and includes approximately $32.44 billion of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.


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[1] Excludes European funds


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