Vintage year
The year a fund made its first investment or first called capital.
Funds from the same vintage are compared with each other, because market conditions when capital is deployed have a large effect on returns. A fund from a downturn vintage is not judged the same as one from a peak.
Different data providers define vintage slightly differently, using the first capital call, the first investment or the legal close. Whichever definition a fund uses, it should apply it consistently and state it in reports.
LPs plan commitments across vintages so they are not overexposed to a single market cycle. Their pacing plans set how much they expect to commit in a given year, which is why timing a raise when target LPs have room in their budget can matter as much as the pitch.
Worked example
A fund that first called capital in 2021 is a 2021 vintage. Funds of that vintage invested at high valuations, so in 2026 an LP compares its TVPI with other 2021 venture funds rather than with 2017 funds that invested at lower prices and have had more time to exit.
Common questions about vintage year
How is a fund's vintage year defined?
Usually the year of the fund's first capital call or first investment. Some LPs and data sets use the year of the first legal close instead, so check which definition a benchmark uses.
Why do LPs compare funds by vintage?
Because market conditions when a fund invests strongly affect its returns. Comparing a fund only against others from the same year separates manager skill from market timing.