Private Company Operating Metrics: Global Analysis
Our annual analysis comparing private equity globally with public peers.
Authored by: Andrea Auerbach
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.
Are Venture Returns About to Cycle?
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.
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.
Venture Capital Will Continue to Crush It
Globally, the venture capital (VC) industry will continue to evolve as capital floods in seeking compelling returns that can be had for those willing to wait.
Are Secondaries Experiencing a Growth Spurt?
Yes. Secondaries, the “yang” to the “yin” of primaries and an investment strategy nearly as old, are growing, particularly GP-led secondaries, which have grown 43% annually over the last nine years.
Are the Strong Recent US Venture Capital Returns Bankable?
No, not yet, as just over 10% of last year’s performance was realized.
Is It Now Growth at Any Price?
In private investing, it appears that way, but a deeper look suggests there could be a method to the valuation madness.