Private Property Trends: Analysis of Operating Metrics for US Real Estate Properties
Insights into key metrics for private US real estate managers and how they have evolved over time.
Insights into key metrics for private US real estate managers and how they have evolved over time.
This report compares operating metrics and trends across Asia, Europe, and the United States, and takes a closer look at comparisons between private and public companies in Europe and Asia.
This analysis includes our observations and more than 30 charts on key metrics including purchase price multiples, leverage multiples, revenue growth, earnings (EBITDA) growth, and earnings (EBITDA) margin.
Growth equity continues to offer investors a compelling return profile that combines the downside protection of buyouts with some of the upside potential of venture capital.
The developed ex US and emerging markets PE/VC indexes outperformed the comparable public equity index (MSCI EAFE and Emerging Markets Indexes), based on mPME returns, for all time periods ending June 30, 2018.
For the first half of 2018, returns for US private equity and venture capital were strong, with only 1 percentage point separating the performance of the two asset classes, as indicated by the Cambridge Associates LLC benchmark indexes.
In USD terms, the Cambridge Associates LLC benchmark indexes for global ex US developed and emerging markets private equity and venture capital (PE/VC) produced nearly identical results in fourth quarter 2017 (5.7% and 5.6%, respectively); but, for the year, the developed markets index earned a significantly better return (30.0% versus 18.9%).
US private equity and venture capital returns were both in the double digits for calendar year 2017, but the divide between the results for the Cambridge Associates LLC indexes for the two asset classes was fairly wide.
The Cambridge Associates LLC global ex US developed markets PE/VC index returned 21.0% year-to-date, boosted by its 5.4% third quarter return. The emerging markets index 4.4% for the quarter and 12.2% year-to-date.
In third quarter 2017, the Cambridge Associates LLC US Private Equity Index® returned 3.9%, matching or beating the previous two quarters to bring its year-to-date return to 11.7%. The Cambridge Associates LLC US Venture Capital Index® returned 3.2% for third quarter, an increase from a weak second quarter; the venture index’s year-to-date performance was 8.1%.