Overview During the third quarter, the Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital (PE/VC) Index fell 5.0% in US$ terms, its first negative quarterly return since second quarter 2012 (breaking its string of eight consecutive positive quarters). The euro weakened in the third quarter, putting pressure on returns measured…
Executive Summary Co-investing is gaining popularity and theoretically offers investors cost advantages and higher return potential. This report frames the opportunities and common pitfalls of co-investing, leveraging our aggregated data on co-investments and funds generating co-investment. Our analysis shows that co-investment returns have the potential to outpace private fund investment returns. Of over 100 buyout co-investments…
Overview US private equity and venture capital funds produced modest returns during third quarter 2014, though both outpaced the S&P 500 and Russell 2000® indexes, as indicated by the Cambridge Associates LLC benchmark indexes of the two alternative asset classes. Over the first nine months of the year, venture capital slightly outperformed private equity and…
Overview During the second quarter, the Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital (PE/VC) Index rose 4.9% in US$ terms, its eighth consecutive positive quarter. The Emerging Markets PE/VC Index returned 4.6% in US$ terms. The euro weakened slightly in the second quarter and had little impact on returns…
During the first half of 2014, US private equity and venture capital funds performed well, with both outpacing public markets. Over the first six months of the year, private equity has slightly outperformed venture capital.
During the first quarter, the Cambridge Associates LLC Global ex US Developed Markets Private Equity and Venture Capital (PE/VC) Index rose 3.4% in US$ terms. Although a decrease from the previous quarter, this was the seventh consecutive positive quarter. The Cambridge Associates LLC Emerging Markets PE/VC Index rose 2.7% in the first quarter. Both the global ex US developed…
The competitive advantages and resulting return profile of sector specialists should not be ignored when constructing a long-term private equity portfolio While it seems clear that a sector specialist should outperform a generalist within their sector of focus, in this paper we introduce data to show that on average sector-focused managers do in fact outperform….
In 2013, US private equity and venture capital turned in their best annual performance since 2006 and 1999, respectively. Strong returns from the large sectors, particularly financial services in the private equity benchmark and information technology (IT) in venture, contributed most to the indexes’ results. In the five years between 2009 and 2013, private equity…
Today’s estimated global overhang is $909 billion net of fees, with US private equity, European private equity, and real estate the primary contributors. With capital appearing to be deployed at a slower pace than historically, the overhang is larger than expected. Too much overhang and the pressure to put capital to work before it expires…
US private equity and venture capital funds began 2014 with positive first quarter returns, as indicated by the Cambridge Associates LLC benchmark indexes. Compared to their strong fourth quarter performance, private equity and venture capital fund returns were lower for the quarter, as were public equity returns. For the second quarter in a row the…