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Chart of the week

North American private equity outperforms the rest of world

Buyout funds focused on North America have delivered greater upside, less downside and higher median performance versus the rest of the world.

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May 30, 2025 | 2 minute read

Buyout fund net IRRs by geography

Box and whisker chart comparing median internal rates of return for North American- focused buyout funds to those in the European, Middle East & African, and Asia and Pacific regions. The chart highlights that North American-focused funds have delivered more upside return with less downside and higher median performance versus the rest of the world.

Source: MSCI Burgiss as of December 31, 2024. Includes buyout funds with vintages from 2000-2020. Orange boxes refer to IRRs between the 50th to 75th percentiles. Grey boxes refer to IRRs between the 50th and 25th percentiles. Lines refer to IRRs in the top fifth and bottom 95th percentiles.

  • North America has been the top-performing market for private equity over the past two decades, delivering more upside, less downside and higher median returns versus the rest of the world.
  • Across the 2000–2020 vintages, the median North American buyout fund delivered a 15.5% internal rate of return (IRR), outperforming international peers by an average of 529bps.1 Top-quartile North American buyout funds outperformed by an average of 615bps.1
  • North American buyout funds also delivered greater upside, with funds in the 95th percentile returning 37%, and less downside than global peers. Even the bottom-fifth percentile of North American buyout funds outperformed their international counterparts by 11.4%.1
  • Despite recent market volatility, the S&P 500’s forward price-to-earnings (P/E) ratio remains around 21x—near a 25-year high and in the top decile of its historical average. Against this backdrop, private markets, and specifically the U.S. middle market, may offer investors an alternative way to access the companies driving growth, innovation and strong returns.

  • Source: MSCI Burgiss as of December 31, 2024. Includes buyout funds with vintages from 2000-2020.

The chart of the week and any accompanying data is for informational purposes only and shall not be considered an investment recommendation or promotion of FS Investments or any FS Investments fund. The chart of the week is subject to change at any time based on market or other conditions, and FS Investments and FS Investment Solutions, LLC disclaim any responsibility to update such market commentary. The chart of the week should not be relied on as investment advice, and because investment decisions for the FS Investments funds are based on numerous factors, may not be relied on as an indication of the investment intent of any FS Investments fund. None of FS Investments, its funds, FS Investment Solutions, LLC or their respective affiliates can be held responsible for any direct or incidental loss incurred as a result of any reliance on the chart of the week or other opinions expressed therein. Any discussion of past performance should not be used as an indicator of future results.

This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All views, opinions and positions expressed herein are that of the author and do not necessarily reflect the views, opinions or positions of FS Investments. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

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