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BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE:STT), one of the world's leading providers of financial services to institutional investors, announced today the results of the State Street Private Equity Index^SM as of September 30, 2009. The index is based on the latest quarterly statistics from State Street Investment Analytics' Private Edge^(R) Group and includes 1,650 private equity partnerships with a total fund size of $1.5 trillion.

The Private Edge Group provides detailed analyses of private equity investments for a diverse client base including asset managers, public and private pensions, endowments and foundations, representing nearly 5,000 commitments totaling $250 billion. The Private Edge Group has one of the most extensive and comprehensive private equity data sets currently maintained in the marketplace, including partnership information down to the portfolio company level.

For the quarter ended September 30, 2009, the index posted a 5.83% return, a slight increase from the second quarter of 2009 return and 1,418 basis points higher than the return recorded during the same period a year ago. The since inception Internal Rate of Return (IRR) as of the third quarter of 2009 was 10.03%, an increase of 95 basis points from the prior quarter.

"During the last few quarters we observed a stronger correlation between the public and private markets, which is reflected in the upward trend of the overall private equity returns," commented Bill Pryor, senior vice president of State Street Investment Analytics. "In addition we saw an increase in cash flow activity during the period, with higher distribution over paid in ratios relative to previous quarters."

Since inception IRRs as of September 30, 2009 for the European and the Rest of the World regions were 12.90% and 2.59%, respectively, with the latter showing an increase of more than 250 basis points from the quarter ended June 30, 2009.

Distressed Debt and Mezzanine funds, which posted a 13.44% return for the third quarter of 2009, continue to perform better than other investment strategies. Buyout funds recorded a quarterly return of 7.09%, an increase of more than 200 and 1,602 basis points from last quarter and the third quarter of 2008, respectively. Venture Capital funds returned -6.55% for the period, dropping by more than 650 basis points from the previous quarter and 241 basis points from the third quarter of 2008.

The following tables depict, as of September 30, 2009, the quarter-over-quarter IRRs of the index, the end-to-end IRRs for the index across 1-, 3-, 5- and 10-year, and the since inception IRRs of the index by strategy, in addition to the composition of the index:

State Street Private Equity IndexSM

Composition and long-term IRR as of September 30, 2009

Strategy                 Number of   Commitments   Since Inception
                         Funds       (USD $B)      IRR %

Buyout                   786         1,136.2       10.27

Venture Capital          684         226.5         9.05

Mezzanine & Distressed   180         170.1         9.69

Total                    1,650       1,532.7       10.03

U.S.                     1,343       1,185.3       9.95

Europe                   180         273.5         12.90

Rest of World            127         73.9          2.59

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $17.9 trillion in assets under custody and $1.7 trillion in assets under management at September 30, 2009, State Street operates in 27 countries and more than 100 geographic markets worldwide. For more information, visit State Street's web site at www.statestreet.com.

About State Street Investment Analytics (SSIA)

State Street Investment Analytics (SSIA) provides performance and analytics services through 14 offices globally and has more than 500 dedicated investment performance professionals. Offering comprehensive services in performance, compliance, risk and strategic analysis, State Street Investment Analytics is well positioned to help customers monitor and measure the success of their investment strategies in any market and asset class including alternative investments, and currently provides services for approximately 1,000 customers with asset volumes of more than $5 trillion. For more information on our services, please visit www.statestreet.com/analytics.

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    Source: State Street Corporation