Venture capital passes $2 trillion in AUM – Preqin

Venture capital assets under management surpassed $2 trillion for the first time in September, according to a newly released Preqin report.

According to the most recent data available, total venture capital AUM reached $2.03 trillion in September.

While the segment, now the second largest asset class in the alternatives industry, is still a third the size of private equity, which had an AUM of $6.03 trillion in September, it has grown significantly faster, Preqin said.

While private equity has experienced a compound annual growth rate of 11.5% since the end of 2012, venture capital’s rate has been 20.2% over the same period.

Also, year-to-date Wednesday, Preqin said venture capital firms have amassed $497 billion of dry powder.

Preqin also noted in a news release Thursday announcing the release of the report that the alternatives research company’s unsmoothed early stage and expansion stage benchmarks returned an annualized 17.6% and 15.9%, respectively, to investors between 2009 and June 30, 2021.

“The inefficiencies that exist in private markets, especially in the venture part of the market, expand the opportunity spectrum and make the asset class a viable long-term, high-return solution for those able to manage their inherent illiquidity,” according to the news release.

The full Preqin report, “Portfolio Allocation in Alternatives: Venture Capital,” is available on its website for subscribers.