VC Performance Q1 ‘06

Private equity funds posted improved returns in the first quarter of 2006 compared to the previous quarter. Venture capital funds saw a 19.8% one-year return, up from 13.3% in Q4 2005, while buyout funds had a steady one-year return of 25.5%. Long-term returns for both venture capital and buyout funds remained strong and continued to outperform public markets like the S&P 500. However, sustainability of private equity's performance relies on a stronger IPO market to provide exits for venture-backed companies.