For the year ended 30 June, 2005, $3.1 billion of private equity was raised by 20 funds. Buyout funds dominated with 69% of the capital and 40% of the private equity funds raised. Although five balanced funds were raised as compared to four expansion stage funds, the latter raised $383.1 million while the former received $321.5 million in commitments.
Forty-two companies or 55% of the companies that exited in the year ended 30 June, 2005, paid back investors from proceeds in merger and acquisition deals. Twenty-seven private equity-backed companies received proceeds by means such as management buybacks while five companies went public.
For each of the time periods measured (one-year, three-years, and five-years), buyouts, later stage, and generalist funds easily dominated the other stage categories. For the one year time period, these funds had a 19.2% IRR, while they had a 37.8% three-year annualized pooled return and a 24.6% five-year return. Overall, private equity funds had double-digit returns for the one-year and three-year periods (10.7% and 14.6%, respectively) and an 8.0% five-year return.