NAIC Study Finds Diverse Private Equity Managers Continue Outperforming Industry Benchmarks

WASHINGTON, Oct. 2, 2025 /PRNewswire/ -- The National Association of Investment Companies (NAIC), the largest network of diverse and women-owned alternative investment firms, today announced the release of its biennial performance study, Affirming the Returns 2025: Further Evidence of Diverse-Owned Private Equity Firm Outperformance. The report confirms that diverse-owned private equity firms once again outperformed industry benchmarks—this time by an even greater margin than in NAIC's 2023 study—underscoring the exceptional talent, deep expertise, and alignment with limited partners that characterize these firms.

The findings are clear. The NAIC Private Equity Index generated an internal rate of return (IRR) of 16.0 percent, significantly outperforming the benchmark, Burgiss median return of 9.0 percent—a difference of 700 basis points. Notably, NAIC private equity managers outperformed the Burgiss median in 90.5 percent of the years studied, highlighting consistent results across market cycles.

Other key measures reinforce the strength of the NAIC Private Equity Index:

• TVPI (Total Value to Paid-In Capital): 1.62x, compared to the Burgiss median of 1.31x.
• TVPI Quartile Performance: First- or second-quartile performance delivered in 66.1 percent of the years studied.
• DPI (Distributions to Paid-In Capital): 0.65x to the Burgiss median's 0.44x
• Outperformed the Burgiss median in DPI approximately 81 percent of the periods measured.

"These results speak directly to the skill of the managers represented in our index," said Robert L. Greene, NAIC's President & CEO. "Their ability to source opportunities, create long-term value, and deliver superior returns stems from their experience, sector expertise, and commitment to alignment with their investors. This performance is not incidental—it is consistent and repeatable."

The report also highlights a critical truth for the industry: every firm featured as an outperformer in this study began as an emerging manager roughly 15 years ago. This finding underscores the importance of emerging manager programs as viable, high-performing investment vehicles that deserve broader adoption by institutional investors.

To ensure accuracy and transparency, NAIC partnered with leading organizations in the field. KPMG LLP managed the collection and compilation of performance data and GCM Grosvenor provided benchmark performance analysis across multiple metrics and time periods.

View the full report

About the National Association of Investment Companies

With more than 54 years of advocacy and performance, the National Association of Investment Companies (NAIC) is the trade association and largest network of diverse- and women-owned alternative investment firms. NAIC's membership comprises more than 175 diverse-owned alternative investment firms that collectively manage over $476 billion in assets under management. NAIC member firms invest with more than 2,200 portfolio companies globally and consistently generate superior returns that help fuel the growth of the retirement and asset management industries.

www.naicpe.com

CONTACT:
Kristen Perlman
Vice President, Marketing and Insights
National Association of Investment Companies
[email protected]

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SOURCE National Association of Investment Companies