Press Release Details

Venture Returns Begin to Reflect Closed IPO Window But Still Exceed NASDAQ and S&P Returns Across All Time Horizons

NEW YORK, Feb. 2 /PRNewswire/ -- Venture capital performance showed positive returns across most investment horizons ending September 30, 2008, according to Thomson Reuters and the National Venture Capital Association (NVCA).

Turmoil in the broader capital markets and the closed IPO window drove the one-year all venture private equity performance index (PEPI) into negative territory to -1.6 percent, with a 6.9 percentage point decrease from the period ending June 30, 2008. Historically, short-term horizons show significant fluctuations quarter over quarter based on current exit market conditions. The next largest consecutive quarterly change occurred in the three-year time horizon where all venture PEPI decreased by 1.9 points quarter-over-quarter. Five-year performance posted a modest decline from the previous quarter, decreasing .2 percentage points. Ten and Twenty-year performance figures showed small quarter-over quarter increases of .8 and .2 percentage points to 17.3 percent and 17.1 percent, respectively.

"The venture capital performance numbers as of the end of the third quarter are reflective of the shuttered IPO window and slowing M&A market for venture-backed companies which deteriorated during 2008," said Mark Heesen, president of the NVCA. "We expect to see further declines in the short term performance numbers into 2009 until the exit markets improve. Longer term performance will hold steady for the time being, but a prolonged capital markets crisis will begin to impact these numbers ultimately as well."

Venture returns across all horizons outperformed public market indices, NASDAQ and the S&P 500, through 9/30/2008.

    Thomson Reuters' US Private Equity Performance Index (PEPI)
    Investment Horizon Performance through 9/30/2008

    Fund Type                           1 Yr   3 Yr   5 Yr  10 Yr  20 Yr
    Early/Seed VC                        0.2    3.8    5.1   37.2   21.6
    Balanced VC                         -6.4    7.4   11.5   14.9   14.7
    Later Stage VC                       8.6   12.0   10.5    8.9   14.7
    All Venture                         -1.6    6.6    8.6   17.3   17.1
    NASDAQ                             -21.4   -1.1    3.1    2.1    8.7
    S&P 500                            -22.0   -1.7    3.2    1.4    7.5
    All Venture (through 6/30/2008)      5.3    8.5    8.8   16.5   16.9
    All Venture (through 9/30/2007)     26.6   11.0    6.8   17.8   16.4

    Source: Thomson Reuters/National Venture Capital Association

    * The Private Equity Performance Index is based on the latest quarterly
      statistics from Thomson Reuters' Private Equity Performance Database
      analyzing the cashflows and returns for over 1941 US venture capital
      and private equity partnerships with a capitalization of $828
      billion.  Sources are financial documents and schedules from Limited
      Partner investors and General Partners.  All returns are calculated
      by Thomson Reuters from the underlying financial cashflows.  Returns
      are net to investor after management fees and carried interest.

About Thomson Reuters

Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people in 93 countries. Thomson Reuters shares are listed on the New York Stock Exchange (NYSE: TRI); Toronto Stock Exchange (TSX: TRI); London Stock Exchange (LSE: TRIL); and Nasdaq (Nasdaq: TRIN). For more information, go to www.thomsonreuters.com.

About National Venture Capital Association

The National Venture Capital Association (NVCA) represents approximately 450 venture capital firms in the United States. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2007 Global Insight study, venture-backed companies accounted for 10.4 million jobs and $2.3 trillion in revenue in the United States in 2006. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.

SOURCE  Thomson Reuters
    -0-                           02/02/2009
    /CONTACT:  Emily Mendell of NVCA, +1-610-565-3904, emendell@nvca.org; or
Sandra Lee of Thomson Reuters, +1-646-223-5292, sandra.lee@thomsonreuters.com/
    /Web Site:  http://www.nvca.org
                http://www.thomsonreuters.com /
    (TRI TRI. TRIL.L TRIN)

CO:  Thomson Reuters; National Venture Capital Association

ST:  New York
IN:  FIN PUB
SU:  ECO

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5049 02/02/2009 08:00 EST http://www.prnewswire.com