Have Public Market Returns Permanently Eclipsed Private Market Returns?
No, while the public market’s outperformance may seem like a total eclipse, this one, like all eclipses, will be temporary.
Authored by: Andrea Auerbach
Private Company Operating Metrics: Global Analysis
Delve into our global private equity operating metrics analysis that not only illuminates the fundamental levers and value drivers in private equity, but also explores a risk and return comparison between private equity and public equity.
Under the Microscope: Private vs Public Company Operating Metrics for US Companies
Delve into our private equity operating metrics analysis that not only illuminates the fundamental levers and value drivers in private equity, but also explores a risk and return comparison between private equity and public equity.
Is All Growth Investing “Growth Equity”?
No. In recent years, many private investment fund managers have painted themselves with a growth equity brush. Limited partners need to be increasingly diligent to determine if they are accessing the truly differentiated and attractive investment profile offered by actual growth equity.
SEC Adopts Reforms Aimed at Enhancing Private Investment Transparency and Investor Protection
The U.S. Securities and Exchange Commission adopted the most extensive reforms for the private investment industry since the Dodd-Frank Act of 2010. The reforms include many noteworthy aspects that we, and the industry, are still reviewing closely.
Is This a New Era for Private Investments?
No. We argue that after macro conditions helped propel the private investment industry to temporary heights, today’s environment has ushered in a “back to normal” era.
Regulators Seek to Contain SVB Fallout
Following no US bank failures in the last two years, two banks failed in the last three days—Silicon Valley Bank (SVB) and Signature Bank. As the situation evolved last week, investors, businesses, and regulators became increasingly concerned about SVB and risks to the broader economy. Over the weekend, US officials from the Federal Reserve, Treasury, and FDIC released a joint statement saying that all deposit holders at both banks will be kept whole, even their uninsured deposits, and the Fed established a new Bank Term Funding Program. In addition, the UK Prime Minister and Bank of England helped arrange the sale of SVB’s UK subsidiary to HSBC. Taken together, these actions significantly decrease contagion risks associated with the collapse of these two banks.
Private Company Operating Metrics: Global Analysis
Our annual analysis comparing private equity globally with public peers.
Under the Microscope: Private vs Public Company Operating Metrics for US Companies
This analysis includes our observations on key metrics by which private equity managers execute their strategy.
US Private Equity Looking Back, Looking Forward: Ten Years of CA Operating Metrics
Reflecting on the last ten years of analyses, we have seen the industry continue to evolve, from Private Equity 1.0 to 2.0, marked by increased sophistication in every aspect of finding, analyzing, and operating companies. With this evolution, private equity has also grown in importance and delivered strong absolute and relative returns. Our analyses have highlighted four key themes: private equity outperformed public markets, the tech sector was a clear winner, top-line growth was a driver of superior returns, and small-cap companies continue to demonstrate promise.