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%.
In second quarter 2017, in USD terms, the Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital Index (PE/VC) returned 10.2% to bring its first half performance to 14.7%. The Cambridge Associates LLC Emerging Markets Private Equity and Venture Capital Index earned 3.3% in second quarter, bringing its six-month return to 7.5%.
Second quarter 2017 US private equity performance was quite strong, while US venture capital performance was more middling, as indicated by the Cambridge Associates LLC benchmark indexes of the two alternative asset classes.
After earning nearly identical returns in fourth quarter 2016, in USD terms, the Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital Index and the Cambridge Associates LLC Emerging Markets Private Equity and Venture Capital Index produced similar results again in first quarter 2017 (4.2% and 4.0%, respectively).
The Cambridge Associates LLC US Private Equity Index® returned 3.9%, slightly lower than its fourth quarter performance. Rebounding from a tough fourth quarter, the Cambridge Associates LLC US Venture Capital Index® returned 3.3%.
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 2016 (0.9% and 0.8%, respectively), but for the year the developed markets index earned a significantly better return (11.7% versus 4.6%).