Performance of Brazilian Private Equity and Venture Capital Funds (1994-2020) (Spectra Investments)

Summary

• Across all analyzed funds, the average net TVPI stood at 1.93 in BRL and 1.55 in USD.p.4
• The overall average net IRR reached 17.5% p.a. in BRL and 11.2% p.a. in USD.p.4
• A share of 45% of the funds generated a net TVPI in BRL greater than 1.5, while 33% achieved this threshold in USD.p.22
• A total of 47% of the funds recorded a net IRR in BRL above 15%, compared to 39% of funds in USD.p.22

Key insights

1. Brazilian Private Equity and Venture Capital investments remained profitable overall despite currency devaluation and local economic volatility.p.4
2. Investments in Brazilian PE and VC funds outperformed market benchmarks such as Ibovespa, MSCI EM, and CDI.p.4
3. Venture capital funds achieved higher returns than private equity funds over the last decade.p.4
4. The top quartile of Brazilian fund managers delivered performance metrics comparable to top-quartile funds globally.p.4
5. The performance spread between the first and bottom quartiles reached 29% in BRL and 30% in USD.p.22