Traditional Performance Benchmarks to Fall Short as PE Evolves, says CA

Fund-level benchmarks, which institutional investors have relied on for decades to evaluate private equity managers and opportunities, no longer provide a complete picture, according to research from Cambridge Associates.

“Fund-level performance benchmarks – the mainstay of private equity performance measurement – are incredibly important and necessary. But they’re not always sufficient in today’s evolving private equity environment,” says Rich Carson, senior director of private investments. “Investment-level data can provide ‘apples-to-apples’ benchmarks for direct and co-investments and they can complement traditional fund-level analysis by providing additional perspectives.”

Read the full article in Institutional Asset Manager here and Private Equity Wire here.

To learn more about investment-level benchmarks, read A New Arrow in the Quiver: Investment-Level Benchmarks for Private Investment Performance Measurement, co-authored by Carson and Andrea Auerbach, head of global private investment research.