PE - vintage year effect

The year means when the fund was launched or closed? Thanks.

Launched, if the fund was closed it wouldn’t have callable capital and no need for analysis

Thanks. Curriculum 4.2.3

In evaluating past records of returns of private equity funds, investors often make comparisons with funds closed in the same year (the funds’ vintage year).

Why it’s closed here? Thanks.

vintage refers to the year they started making investments.

if the firm didn’t make any investment until 1 year after the launch, i think the vintage would be launch+1 yr.

maybe the text is saying it’s a closed-end fund? so it started investing after closing?

closed, as in, the deal closed? PE funded…

its kind of similar…

When the fund is closed for all investers is effectively when its launched I guess?


Two methods used to determine vintage year are:

  1. The year of the investment vehicle’s first drawdown or capital call from its investors; or
  2. The year when the first committed capital from outside investors is closed and legally binding.

i always thought that when a PE firm was closed it was meant like being closed to investors but still operational (not as in closed like the firm went bankrupt and closed)

Curriculum Glossary - Vintage year: With reference to a private equity fund, the year it closed.

I’m also thinkig it’s refering to close for investors?

I’m looking this up and seeing that my interpretation of the fund being closed is wrong. I think everyone here is right - sorry to confuse. The proper answer here is that the year the fund launches and the year the fund closes are the same year

Clear. Thanks.

I think closed means that they’ve raised all of the necessary capital for that particular vintage.