Ten years ago, we were emerging from the Global Financial Crisis (GFC); the worst recession and market crash experienced in decades. With increased commitment activity and growing exposures to private investments, institutional investors needed new tools to understand the impacts on and implications for their portfolios. In response to this need, Cambridge Associates issued our […]
November 2022
Most defined benefit plans—including public, multi-employer, and even frozen corporate plans—can benefit from private investment (PI) strategies. It is fairly common knowledge that private investments offer important value in the form of increased expected investment returns, and that they can be instrumental in improving funded status and achieving other plan goals. Despite this, many plan […]
September 2022
In 2021, the Cambridge Associates LLC Developed Markets (ex US) Private Equity and Venture Capital (PE/ VC) Index returned 33.4% in USD terms, equaling its strong performance in 2020. Because the index’s return is measured in US dollars, the currency’s value vis-à-vis the euro impacts its performance. The US dollar gained significant value against the […]
August 2022
In 2021, the US private equity and venture capital (PE/VC) indexes posted their highest calendar year returns since 1999, potentially signaling a market peak and the end of over a decade of steady growth. For the year, the Cambridge Associates LLC US Private Equity Index® returned 41.3% and the Cambridge Associates LLC US Venture Capital […]
August 2022
Yes. We do expect venture capital (VC) returns to be negatively impacted in the coming quarters but doubt that impact will be as pronounced and wholesale as it was during the dot-com era. To this day, the US VC 1999 vintage year fund cohort still reports an overall negative internal rate of return and has yet to return […]
May 2022
In the first six months of 2021, according to Cambridge Associates indexes, private equity and venture capital in the developed markets outperformed those in emerging markets. The Cambridge Associates LLC Developed Markets ex US Private Equity and Venture Capital (PE/VC) Index returned 18.7% in the first half of 2021, in USD terms, with significantly better […]
January 2022
In the first half of 2021, US private equity and venture capital returns continued the torrid pace that started in second quarter 2020. For the six months ended June 30, 2021, the Cambridge Associates LLC US Private Equity Index® returned 25.5% (11.4% and 12.5% in first and second quarters, respectively) and the Cambridge Associates LLC […]
January 2022
Investors with mature private investment programs tend to have private exposure to major developed markets, such as the United States and Europe. While many of these investors have added Chinese exposure to their private programs over the last decade, interest has recently increased in less-trafficked Asian markets and more specialized European strategies. We expect this interest will continue to expand next year.
December 2021