The data analysis, from the pan-European trade body Invest Europe, found that European buyouts delivered an internal rate of return (IRR) of 15% since inception to end-2019, beating the MSCI Europe index return of 5.84%.
It also found that European venture capital returned an IRR of 16.79% over a 10-year horizon, close to that of North American funds.
The findings are contained in two reports published today which measured European private equity returns against relevant stock market indices, as well as private equity funds from North America and the rest of the world on a range of metrics.
The first report, Benchmarking Public and Private Markets with the Public Market Equivalent (PME) compares a range of performance metrics to determine their relative strengths and weaknesses.
The second, The Performance of European Private Equity Benchmark Report 2019, records private equity performance over the last four decades.
Eric de Montgolfier, chief executive of Invest Europe, said that the reports supported the drive “to more consistent and robust performance metrics that can enable investors to compare assets more easily.”