Calendar year 2016 results for the Cambridge Associates LLC benchmark indexes for US private equity and US venture capital dramatically diverged: the private equity index had its best year since 2013 and the venture capital benchmark had its worst year since 2008.
In USD terms, the Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital Index returned 4.9% in third quarter 2016; the Cambridge Associates LLC Emerging Markets Private Equity and Venture Capital Index returned 2.6%. Both indexes performed much better in the third quarter than in the second.
Third quarter 2016 returns for the Cambridge Associates LLC US Private Equity Index® and the Cambridge Associates LLC US Venture Capital Index® were 3.7% and 3.3%, respectively. The private equity index equaled its performance for the previous quarter, and the venture index produced its first positive quarter of the year, bringing its year-to-date return into positive territory as well.
Second quarter returns, in USD terms, for 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 were 1.3% and 0.7%, respectively. The dollar strengthened a bit from March to June, helping to dampen returns measured in US dollars. Public indexes tracking European companies generally suffered losses during the quarter, while emerging markets indexes were marginally positive.
Second quarter 2016 returns for the Cambridge Associates LLC US Private Equity Index® and the Cambridge Associates LLC US Venture Capital Index® were 4.0% and 0.7%, respectively. The benchmark indexes for both alternative asset classes rebounded after a poor first quarter, though US venture capital remains in negative territory for the year.
During first quarter 2016, in USD terms, the Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital Index returned 4.5% and the Cambridge Associates Emerging Markets Private Equity and Venture Capital Index returned 0.2%.
US private equity and venture capital funds had a tough first quarter in 2016, as indicated by the Cambridge Associates LLC benchmark indexes of the two alternative asset classes. The Cambridge Associates LLC US Private Equity Index® eked out a return of 0.2%; the Cambridge Associates LLC US Venture Capital Index® returned -3.3%.
The Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital (PE/VC) Index returned 2.0% in USD terms in fourth quarter 2015, bringing its return for the year to 5.7%, a small improvement over 2014. The Cambridge Associates LLC Emerging Markets PE/VC Index returned 5.1% in fourth quarter and 8.5% for the year, a drop of more than 5 percentage points from its 2014 return.
The Cambridge Associates LLC benchmark indexes for US private equity and US venture capital produced modest returns for fourth quarter 2015, leading to lower calendar year performance than either index earned in the two previous years. Both benchmark indexes outperformed the public indexes for the year, but not the quarter.
Third quarter 2015 performance saw returns drop into negative territory. The Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital Index returned -0.6%, and the Cambridge Associates LLC Emerging Markets Private Equity and Venture Capital Index fell to -4.8%.