Key Takeaways
- • HarbourVest's Global Buyout Benchmark returned -1.6% in Q1 2026, with Information Technology falling -5.0% as public SaaS repricing flowed into private portfolios, according to HarbourVest Partners data published via Business Wire.
- • Software & Services slipped to -6.4% for the quarter and 0.1% over the trailing year, yet remained the top industry group over 10 years at 21.9% annualized.
- • In the US, trailing one-year Information Technology returns turned negative at -2.2%, while Global ex-US (14.6%) and Europe (11.1%) technology buyouts stayed positive.
- • Financials was the US one-year standout at 15.8%; Communications Services led outside the US with 15.4% (Global ex-US) and 14.8% (Europe).
- • HarbourVest's Sofia Gertsberg and Scott Voss argue that aggregate returns and sector labels obscure divergent underlying performance, requiring look-through analysis to individual industries.
Summary
HarbourVest Partners reported that its Private Equity Global Buyout Benchmark posted a -1.6% return in the first quarter of 2026, according to investment-level benchmark data published via Business Wire. The decline was driven by the Information Technology sector, the largest in the benchmark at roughly 29% weight as of March 31, 2026, which returned -5.0% for the quarter. Most other sectors dipped 2% or less, while Industrials generated positive performance. HarbourVest attributes the drag to the public market selloff in Software as a Service equities, which extended into private portfolios.
Within Information Technology, Software & Services bore the brunt of the fallout, falling to -6.4% for the quarter and 0.1% over the trailing year. The industry group nonetheless remained the top performer over ten years with a 21.9% annualized return. Sofia Gertsberg, Managing Director and Head of Quantitative Investment Science at HarbourVest Partners, said the quarter "predominantly tell[s] a software story," adding that some of the SaaS repricing in public markets was reflected in the buyout benchmark for the first time.
Regional results diverged. In the US, where Information Technology carries about a 32% weight, trailing one-year technology returns turned negative at -2.2%. Information Technology remained positive in Global ex-US (14.6%) and Europe (11.1%) buyouts. Financials was the US one-year leader at 15.8%, while Communications Services outperformed outside the US with 15.4% and 14.8% one-year returns for Global ex-US and Europe respectively. Scott Voss, Chief Market Strategist at HarbourVest, said the quarter's headline "masks a highly idiosyncratic market," noting that software fell while hardware rose.
HarbourVest also highlighted differences in benchmark concentration. The top 10 holdings represented about 5.0% of total Global Buyout Benchmark value and 10.8% of the Information Technology sector, compared with 28.4% of MSCI ACWI market capitalization for the top 10 public companies. The firm said public technology indices carry more semiconductors and hardware, which rallied on AI demand, explaining why public Information Technology indices rose over the trailing year while the software-heavy private benchmark did not. The benchmark is built on more than 66,000 investments representing over $3.8 trillion of capital invested, and returns are gross of fees and carried interest. HarbourVest manages more than $160 billion in assets under management as of March 31, 2026.
Within Information Technology, Software & Services bore the brunt of the fallout, falling to -6.4% for the quarter and 0.1% over the trailing year. The industry group nonetheless remained the top performer over ten years with a 21.9% annualized return. Sofia Gertsberg, Managing Director and Head of Quantitative Investment Science at HarbourVest Partners, said the quarter "predominantly tell[s] a software story," adding that some of the SaaS repricing in public markets was reflected in the buyout benchmark for the first time.
Regional results diverged. In the US, where Information Technology carries about a 32% weight, trailing one-year technology returns turned negative at -2.2%. Information Technology remained positive in Global ex-US (14.6%) and Europe (11.1%) buyouts. Financials was the US one-year leader at 15.8%, while Communications Services outperformed outside the US with 15.4% and 14.8% one-year returns for Global ex-US and Europe respectively. Scott Voss, Chief Market Strategist at HarbourVest, said the quarter's headline "masks a highly idiosyncratic market," noting that software fell while hardware rose.
HarbourVest also highlighted differences in benchmark concentration. The top 10 holdings represented about 5.0% of total Global Buyout Benchmark value and 10.8% of the Information Technology sector, compared with 28.4% of MSCI ACWI market capitalization for the top 10 public companies. The firm said public technology indices carry more semiconductors and hardware, which rallied on AI demand, explaining why public Information Technology indices rose over the trailing year while the software-heavy private benchmark did not. The benchmark is built on more than 66,000 investments representing over $3.8 trillion of capital invested, and returns are gross of fees and carried interest. HarbourVest manages more than $160 billion in assets under management as of March 31, 2026.
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