Global ex US PE/VC Benchmark Commentary: First Half 2022
According to Cambridge Associates indexes, private equity and venture capital in the developed markets underperformed those in emerging markets in first half 2022.
According to Cambridge Associates indexes, private equity and venture capital in the developed markets underperformed those in emerging markets in first half 2022.
We expect the cyclical backdrop to impact private equity and venture capital returns, ultimately influencing recently invested vintages the most. That said, we think the 2023 vintage could perform well.
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.
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.
In 2021, the US private equity and venture capital 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 Index® gained 54.6%.
Our annual analysis comparing private equity globally with public peers.
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.
In the first half of 2021, US private equity and venture capital returns continued the torrid pace that started in second quarter 2020.
This analysis includes our observations on key metrics by which private equity managers execute their strategy.
In 2020, the Cambridge Associates LLC Developed Markets (ex US) Private Equity and Venture Capital Index® returned 33.1% in USD terms.