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DPI, TVPI, and IRR benchmarks for venture capital and private equity funds, compared head-to-head across vintage years, fund sizes, and strategies. Data sourced from Cambridge Associates, PitchBook, and Burgiss. Updated for mid-2026 with AI fund outperformance trends.
| Metric | Top Quartile VC | Median VC | Top Quartile PE | Median PE |
|---|---|---|---|---|
| TVPI (mature funds) | 3.0x+ | 1.5–2.0x | 2.0–2.5x | 1.5–1.8x |
| Net IRR (mature vintages) | 22–30% | 10–15% | 18–24% | 12–16% |
| DPI (year 8) | 1.5–2.5x | 0.7x | 1.5–2.0x | 1.3x |
| PME vs. S&P 500 | 1.4–2.0x | 1.0–1.2x | 1.2–1.5x | 1.1–1.3x |
| 2021 Vintage TVPI | 1.8–2.5x | 1.1x | 1.5–1.8x | 1.3x |
| Volatility / Dispersion | Very high | High | Moderate | Low-moderate |
| Time to DPI > 1.0x | 8–12 yrs | 10–14 yrs | 5–7 yrs | 5–8 yrs |
PE is returning cash to LPs significantly faster than VC. At year 8, the average PE fund has a DPI of ~1.3x vs. ~0.7x for VC. The 2021 vintage VC DPI is especially weak due to the IPO window closing from 2022-2024. LPs increasingly prioritize DPI over paper TVPI, which is shifting allocations toward PE and secondaries.
VC returns follow a power law — the top 10-15% of deals generate nearly all fund returns. PE returns are more distributed. This means VC has higher upside potential but also higher loss rates per investment. A typical VC fund loses money on 50-60% of its positions; PE loss rates are far lower.
2021 vintage VC funds deployed at peak valuations and are struggling — median TVPI of just 1.1x as of mid-2026. Many 2021 VC funds may never return capital. PE 2021 vintages are faring better (median ~1.3x TVPI) due to leverage-driven value creation and earlier exit paths. However, 2022-2023 vintage VC funds are showing early promise, having deployed at much lower entry prices.
AI-focused funds are outperforming both traditional VC and PE benchmarks. Early-stage AI funds from 2019-2022 vintages are showing top-decile returns driven by the AI infrastructure boom. This is creating a new category that blurs the VC/PE line — AI growth funds deploying $50M-$500M checks with PE-like return consistency but VC-like upside.
Over long time horizons, top-quartile VC outperforms top-quartile PE on IRR and TVPI — but median VC underperforms median PE. The key insight: PE has a tighter return distribution, making it less dependent on picking a top-quartile manager. Cambridge Associates data shows median PE consistently beats median VC. But the best VC returns (3x+ TVPI for top quartile mature funds) are not achievable in PE due to the power law dynamics of early-stage tech investing. In 2026, the biggest divergence is on DPI — PE is returning cash while VC LPs wait.
Top-quartile PE buyout funds target 18-24% net IRR; median PE delivers 12-16% net IRR for mature vintages (2012-2018). PE's consistency advantage is most visible in DPI: average PE DPI of 1.3x at year 8 vs. just 0.7x for VC. The 2022-2023 vintage PE faces some headwinds from higher leverage costs, but entry multiples have compressed, potentially setting up strong returns. PE continues to benefit from less J-curve volatility than VC.
The fundamental difference: VC returns are driven by a small number of very large winners (power law), while PE returns are driven by operational improvement and financial leverage across a broader portfolio. VC funds with one 50x return can generate 3x fund returns even if 60% of the portfolio goes to zero. PE requires more consistent performance across all portfolio companies. In 2026, AI-focused funds are creating a new dynamic — blending VC-like upside with more consistent deployment patterns, outperforming both traditional VC and PE benchmarks.