(July 24, 2013) – Is there nothing Danish national pension fund ATP cannot do? Its private equity arm has been ranked as one of the three that most consistently outperform their sector by data monitor Preqin.
ATP Private Equity Partners is one of two Danish firms-NorthSea Capital is the other-that sit alongside Morgan Stanley Alternative Investment Partners as the fund of fund managers that most consistently beat their peers. All three firms’ average quartile ranking was a perfect 1.00.
Preqin produced the rankings as part of its 2013 performance analysis and considered only managers that had launched at least three funds into the same sector before 2011.
Inflexion, Veritas Capital, Vista Equity Partners, and Wynnchurch Capital Partners were at the top of the table for buyout funds, while in the venture capital sector, there were three leaders of the pack with a perfect 1.00 score for average quartile ranking: Benchmark Capital, Pittsford Ventures Management, and Sequoia Capital.
There is a significant spread between the performance of individual funds, with a particularly large gulf between the returns generated by the best and worst performing funds, according to Ignatius Fogarty, head of private equity products at Preqin. “There is clear evidence to suggest that managers of top-tier funds are more likely than their peers to continue to produce top-performing funds in the future, though we must note that past performance is not a guarantee of future success.”
Some 16% of managers of bottom quartile funds subsequently improve and manage top quartile successor funds, but many more do not, Fogarty said, adding that while track record was a very important component of analysing a fund, each should be judged on its own merit.
To access the full, and regional, rankings click here.
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