The private2000® index tracks the monthly performance of 2,000 private companies across 30 key markets and is designed to mirror a globally diversified private equity portfolio.

It delivered a negative 1.63% return for the quarter ending September 30, 2025, including a -0.13% return in September. Returns have stabilised after a poor start to the year during Q1 (-4.75%).

Among the highlights of Q3 2025:

• Key Performance Drivers: The Natural Resources sector was the lone positive contributor in Q3, delivering a 1.73% return. Information and Communication and Professional Services were next in line with returns of -0.50% and -0.51%, respectively. Geographically, the US had -1.58% returns, while Europe was slightly worse, at -2.16%.

• Sector and Geographic Breakdown: The index is largely weighted towards Information & Communication (19.1%) and Professional Services (20.1%), with the top 5 sectors accounting for 80%. Geographically, the US dominates the index with a 47.4% allocation.

• Price returns were negative for the quarter, coming in at -2.44% in Q2, while cash returns were supportive at 0.82%. Cash returns have been an important component of returns recently in a weaker market environment.

• Index Valuation. EV/Sales at quarter end was 1.47x, down marginally from 1.48x in Q2. For EV/EBITDA (unadjusted), the index stood at 14.66x, down from 14.93x in Q1. Multiples have continued to deflate month over month through the first 9 months of 2025, driving the weaker returns.

• Leverage, growth and size factors were positively rewarded in Q3, benefiting companies with higher leverage, higher growth, and larger size given private2000’s betas to these factors. The profit factor was the largest detractor, as the index’s negative beta to the profit factor lowered returns as profitable firms outperformed this quarter.

• Using the PECCS taxonomy, companies with production-based revenue models, business-focused customers, mature operations, and both products and service-oriented offerings were the key contributors to index performance.

Takeaway: Private equities returns in Q3 2025 remained subdued, bringing year to date returns to -6.4% for the flagship private2000 VW index. Valuation multiples further declined, with index level EV/Sales and EV/EBITDA falling 0.8% and 1.8%, respectively. On the positive front, deal activity and value picked up in Q3, with a number of large transactions announced in the quarter. Further, private equity exits showed signs of life, surpassing levels witnessed over the last two to three years (EY).

Read the full report here.

Find out more about the private2000 index here.