Private Equity Performance Continued To Improve in Q4 2003

Private equity performance improved in Q4 2003, with venture capital returning 8% for the first time in three years and total private equity returning 18.3%. Performance has strengthened as exit markets like IPOs and acquisitions have improved, stabilizing private company valuations. While returns are recovering, performance remains below historical norms and continued strengthening of exit markets is needed for full recovery. Long-term venture capital returns over 5, 10, and 20 years have consistently outperformed public markets.