Private equity annualized returns were negative for the eighth consecutive quarter, according to the year-end 2002 Private Equity Performance index released today by Thomson Venture Economics and the National Venture Capital Association.
All venture capital funds returned an average of -23.3% for the year ended Dec. 31, while private equity funds posted -11% for the same period. Early seed venture-cap funds posted the worst performance, -27.6%, for the one-year period ended Dec. 31. The Nasdaq composite, the public benchmark used by the NVCA, performed even worse, with a -31.6% return for the one-year period. Valuations of high-tech companies continued to fall and exit opportunities remained scare, negatively affecting short-term performance.