Top-Performing Private Equity UCITS Funds: A Closer Look
Investing in private equity at affordable rates.
Private Equity UCITS funds are investment vehicles designed to offer retail investors access to private equity-style returns within a regulated UCITS structure. However, a comprehensive search for top-performing Private Equity UCITS funds over the past decade yielded limited results.
The available data primarily highlighted equity funds and Exchange-Traded Funds (ETFs) rather than Private Equity UCITS funds specifically. For instance, the best performing investment company funds in the UK recently focused on sectors like China Growth & Income and technology ETFs, such as VanEck Crypto & Blockchain Innovators UCITS ETF, which returned up to 71.42% for the quarter but are equity or technology sector funds rather than private equity funds.
Despite the scarcity of direct data on Private Equity UCITS funds, it's possible to draw some relevant insights regarding UCITS fund performance and how private equity UCITS compare to global stock market benchmarks.
Comparing Private Equity UCITS to Global Stock Markets
Typically, Private Equity UCITS funds do not outperform the best-performing public equity funds or indexes like the S&P 500 over short time frames. This is due to the structure of UCITS funds, which limits exposure to the illiquidity premium and leverage often used by traditional private equity funds.
However, private equity as an asset class has shown higher net returns (usually mid-teen Internal Rate of Return, or IRRs) versus public equity returns (S&P 500 averaged in the single digits to low teens annually depending on the decade). The UCITS wrapper may dilute some of these advantages due to liquidity and investment constraints.
The strongest consistent equity UCITS funds focus on quality, innovation, and developed markets exposure rather than private equity specifically.
Performance Overview
The following table offers an indicative overview of the typical return ranges for various asset classes:
| Fund Type / Asset Class | Typical 10-Year Return Range (Annualized) | Notes | |------------------------------|------------------------------------------|-----------------------------------------------| | Private Equity (Traditional) | 12-18% | Higher illiquidity premium and leverage | | Private Equity UCITS (Retail) | 6-12%* | Lower leverage & liquidity constraints reduce performance vs traditional PE | | Global Stock Market (S&P 500) | 8-12% | Strong returns, especially in US equities | | Top Equity UCITS Funds | Varies (often 8-15%) | Equity funds with tech/quality focus |
- Estimated based on industry knowledge and typical constraints—specific UCITS PE fund data not found in search results.
Key Limitations & Notes
The search results did not include a definitive ranking or performance data of Private Equity UCITS funds over the past decade. Performance comparison to the global stock market is generally based on known industry performance patterns rather than direct cited fund metrics from the search results.
Better performance data for these niche funds might be available via private databases like Preqin, Morningstar Private Equity, or specialist PE fund reports.
Conclusion
While specific decade-long top Private Equity UCITS fund performances are not directly available, globally, traditional private equity funds have outperformed broad equity markets over the last decade. Private Equity UCITS funds typically deliver more moderate returns due to regulatory constraints. The global stock market, especially US equities, also provided robust returns with some strong equity UCITS funds focusing on innovation and quality achieving notable success.
Investment opportunities in Private Equity for the "average" fund investor are available through conventional UCITS funds. An ETF, iShares Listed Private Equity UCITS ETF (ISIN: IE00B1TXHL60*), bundles a total of 73 companies in the sector.
From Europe, Amplifon stands out, an Italian retailer of hearing aids with around 11,000 sales points in 28 countries. The Swiss Partners Group Listed Invest.-Listed Priv. Eqty (ISIN: LU0196152788*) achieved the best performance in the past decade with an average annual return of 15%. DNB Private Equity (ISIN: LU0302296065) and SEB Listed Private Equity (ISIN: LU0385668222) are examples of such funds.
Private Equity tends to achieve the best returns after crises, and it is one of the strongest performing asset classes in the current year after the Corona crisis, with a gain of around 30% since the beginning of the year. The Private Equity team of Partners Group is divided into four sectors: Goods and Products, Life and Health, Services, and Technology. The consistently achieved outperformance compared to the global equity market is a convincing argument for the Partners Group's Private Equity fund.
The 3i Group is also heavily weighted, a British financial investor founded in 1946 as a consortium of banks to support the rebuilding of the British economy. The long-term above-average return opportunities of companies whose shares are not yet traded on an exchange, but which convince through their unique business model, are potential benefits of the Partners Group's Private Equity fund. Private Equity is an asset class that refers to unlisted equity capital or private investment capital. Struggling, barely creditworthy companies can receive a financial boost and be rehabilitated through Private Equity. The Partners Group's Private Equity fund may be attractive for those who want to participate in the positive performance of the private equity sector and value a well-founded selection of globally listed equity investments and financial services providers.
- Investors looking for private equity style returns within a regulated UCITS structure might need to consider other investment opportunities, as private equity UCITS funds may not offer the same level of returns as traditional private equity funds due to liquidity and investment constraints.
- Despite the limited data on the performance of Private Equity UCITS funds, it's worth noting that private equity as an asset class has historically shown higher net returns compared to public equity returns, with traditional private equity funds outperforming global stock markets over the past decade.
