Returns of active buyout funds dipped in the quarter ended June 30 to 1.44x as measured by total value to paid-in multiple from 1.45x at the end of the prior quarter, but they were flat compared to the year-earlier quarter, according to research by alternative investment management software firm eFront.
Buyout funds in the second quarter outperformed the average multiple for the 9.5-year period through June 30 of 1.29x, the report shows. During the period, buyout fund multiples peaked at 1.49x as of Sept. 30, 2017.
However, the time between an investment and return of investor capital increased slightly to 2.7 years in the most recent quarter from 2.6 years in the quarter ended March 31; the time was 3.2 years at the end of the second quarter of 2017. Time-to-liquidity has been growing shorter since it reached its peak of 3.9 years in 2015.