Benchmark Type: US PE/VC

August 2019
US PE/VC Benchmark Commentary: Second Half and Full Year 2018

In contrast to the public markets, and despite a weak fourth quarter, the Cambridge Associates US private equity and venture capital indexes both produced double-digit positive returns for calendar year 2018. Public market volatility, particularly in the final quarter of the year, heavily impacted the large sectors within the private equity index. Nonetheless, almost all…
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 »

April 2018
US PE / VC Benchmark Commentary: Third Quarter 2017

Over the first nine months of 2017, US private equity quarterly returns were more consistent than those for US venture capital, as indicated by the Cambridge Associates LLC benchmark indexes of the two alternative asset classes. In third quarter 2017, the Cambridge Associates LLC US Private Equity Index® returned 3.9%, matching or beating the previous two quarters to bring its year-to-date return to 11.7%. The Cambridge Associates LLC US Venture Capital Index® returned 3.2% for third quarter, an increase from a weak second quarter; the venture index’s year-to-date performance was 8.1%. In the public markets, the Russell 2000® (small cap) and the tech-heavy Nasdaq outperformed the S&P 500 during the quarter. Figure 1 depicts performance for the private asset classes compared to the public markets. Cambridge Associates’ mPME calculation is a private-to-public comparison that seeks to replicate private investment performance under public market conditions.
Read More »