US PE/VC Benchmark Commentary: Calendar Year 2025 (Cambridge Associates)

Summary

• In calendar year 2025, the Cambridge Associates LLC US Private Equity Index returned 8.7% while the US Venture Capital Index returned 21.1%.p.1
• Within private equity strategies, growth equity returned 11.9%, outperforming buyouts which returned 7.6%.p.1
• US private equity limited partner distributions outpaced contributions in 2025, with managers returning $185 billion and calling $145 billion.p.3
• Information technology remained the largest sector in the US private equity index, representing 36% of market value as of December 31, 2025.p.4
• US venture capital cash flows were more active in 2025, as managers called $61 billion from LPs and returned $42 billion.p.6
• Venture capital sector performance ranged widely in 2025, from 0.3% for consumer discretionary to 77.2% for industrials.p.7

Key insights

1. Public companies accounted for roughly 6% of the VC index market value and 5% of the PE index market value at year-end 2025.p.2
2. Seven key vintage years (2017–23) accounted for 81% of the US private equity index net asset value as of December 2025.p.2
3. Annual returns for key private equity vintages ranged from 4.2% for the 2018 cohort to 16.7% for the 2023 cohort.p.2
4. Five vintage years (2021–25) represented 89% ($129 billion) of total US PE capital calls in 2025.p.3
5. The 2023 vintage delivered the strongest return among US venture capital cohorts in 2025 at 50.5%.p.5
6. US venture capital LP contributions exceeded distributions, with capital calls reaching $61 billion compared to $42 billion in distributions.p.6
7. Venture capital fund managers allocated 51% of their 2025 invested capital to information technology and 24% to healthcare.p.7
8. As of December 31, 2025, Cambridge Associates tracked 1,769 US buyout and growth equity funds formed from 1983 to 2025 with a aggregate value of $1.7 trillion.p.8