Press Releases

The 2010 HEC-Dow Jones Private Equity Performance Ranking

14 December 2010

The ranking lists the Top 20 PE firms in terms of aggregate performance rates between 1997 and 2006. With this ranking, Professor Gottschalg answers the question: “Which firm(s) generated the best performance for their investors over the past years?”

The Private Equity industry is notorious for being opaque and access to any data is chronically difficult. In particular, little is known about the performance and competitive behavior of the key PE Firms. While performance rankings exists for many other areas (the best ‘business school’, the best ‘place to work’, the best ‘stock market analyst’ etc), nothing worth that name exists in PE.

Until recently, the only available rankings for Private Equity were based on size alone, which has very limited meaning. Since 2009, HEC Paris and Dow Jones have joined forces to publish regular rankings of PE Firms based on their historic performance and expected future competitiveness respectively.

“The ranking draws on a comprehensive set of data on PE fund performance provided by Preqin Ltd and uses a novel and unique methodology to calculate the aggregate performance of a PE firm based on difference performance measures for all the funds managed by this firm.

The method is able to aggregate performance across vintage years and considers relative and absolute returns. In total, we analyzed performance data from 317 PE firms and the 598 funds they raised between 1997 and 2006 with an aggregate equity volume of $714bn.” says Professor Gottschalg.

Oliver Gottschalg is associate professor of Strategy and Business Policy at HEC Paris. He serves as academic co‐director of the TRIUM Global Executive MBA, coordinator of the Entrepreneurship Track in the HEC MBA program and Director of the HEC Buyout Research Program. He teaches courses on strategy, entrepreneurship, business plan design and management buyouts. His current research focuses on the strategic logic and the performance determinants of private equity investments.

About HEC Paris

A leader in Europe, HEC Paris specializes in management education and research.

HEC Paris offers a full, unique range of courses to the leaders of tomorrow: the Masters Degrees (MSc programs and Specialized Masters), the MBA program (full‐time and part‐time), the PhD, the Executive MBA and the Trium Global Executive MBA.

Founded in 1881, HEC has a permanent faculty of 110 professors, 4000 students on its campus (40% of whom are foreign) and over 8500 managers and executives trained in the executive education programs each year.

For more information: www.hec.frPress Contact, HEC Paris: Elisabeth de Réals +33 1 39 67 94 23

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