The developed ex US and emerging markets PE/VC indexes have handily outperformed their public market counterparts across time based on modified public market equivalent (mPME) returns.
Fixed income assets and gold advanced, as escalating trade tensions cast uncertainty regarding the global growth outlook and global central banks sounded a more dovish tone; equities and other real assets were more mixed. This chart book presents returns and other market metrics for fiscal year 2019.
In contrast to the public markets, and despite a weak fourth quarter, the Cambridge Associates US private equity and venture capital indexes both produced double-digit positive returns for calendar year 2018.
Mega funds are indeed in a category by themselves, namely that of a new public markets proxy.
Public and private Chinese equities both present attractive investment opportunities today.
Co-investments are one of only a handful of control levers within an LP’s toolbox, and we encourage all private market investors, regardless of size, to consciously consider implementing a co-investment program.
While we have advised a gradual approach to investing in China, today we believe that investors should take a systematic and comprehensive approach, overweighting Chinese assets relative to their index weights. Looking past the uncertainty and negativity, investors will find a large investment opportunity set, a robust universe of public and private managers, and appealing public equity valuations.
Investors navigating the robust fundraising environment should be selective when making commitments in 2019.
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.