Benchmark Type: Commentaries

October 2018
Global ex US PE / VC Benchmark Commentary: Fourth Quarter 2017

In USD terms, the Cambridge Associates LLC benchmark indexes for global ex US developed and emerging markets private equity[ref]Beginning with this quarter’s edition of the global ex US benchmark commentary, “private equity” will refer only to buyout and growth equity funds in the benchmark indexes, and will not include energy-focused and subordinated capital funds. The focus on buyout and growth equity funds is to better represent the private equity asset class; the removed strategies are established independent strategies in their own right and should be analyzed separately. It should be noted that the energy and subordinated capital funds have tended to compose a minority of the benchmark indexes.[/ref] and venture capital (PE/VC) produced nearly identical results in fourth quarter 2017 (5.7% and 5.6%, respectively); but, for the year, the developed markets index earned a significantly better return (30.0% versus 18.9%).
Read More »

September 2018
US PE / VC Benchmark Commentary: Fourth Quarter 2017

US private equity and venture capital returns were both in the double digits for calendar year 2017, but the divide between the results for the Cambridge Associates LLC indexes for the two asset classes was fairly wide. Key sectors (with the exception of energy) across the indexes posted strong returns against a backdrop of healthy public markets and an improving economy; in the public markets, US large-cap stocks had a stronger year than their smaller counterparts. When comparing the US private equity and venture capital indexes to public equities (based on modified public market equivalent [mPME] returns), the private indexes have the most success in longer time horizons (Figure 1). The Cambridge Associates US Private Equity Index has beaten small caps across all time horizons, but its record against the large-cap indexes has been mixed over the past five years. Through the end of calendar year 2017, the Cambridge Associates US Venture Capital Index® has outperformed small- and large-cap stocks and tech stocks on the 20- and 25-year horizons, but was either merely competitive or trailed in other time periods. Cambridge Associates’ mPME calculation is a private-to-public comparison that seeks to replicate private investment performance under public market conditions.
Read More »