For the first time, this update to our annual report includes comparisons of private equity globally (roughly 8,500 companies in total) with public peers, as well as regional comparisons for approximately 4,000 US-based companies, more than 2,000 European companies, and more than 1,200 Asian companies acquired by PE firms from 2000 through 2018.
The gradual abatement of geopolitical risks, and a renewed accommodative stance from global central banks, led to a strong rebound in risk sentiment in 2019. Equities led the way higher, while interest rate cuts ensured fixed income markets participated in what was a robust year for asset classes across the board. This chart book explores global asset returns and the factors influencing performance last year.
For first half 2019, US private equity and venture capital produced double-digit returns, as indicated by the Cambridge Associates LLC benchmark indexes.
The developed and emerging markets PE/VC indexes have outperformed their public market counterparts across time (based on modified public market equivalent returns).
Families of wealth face three key questions about intergenerational wealth planning: how best to invest to sustain future generations; how best to engage the next generation; and how best to ensure family unity endures. Often each question is addressed independently. We find that a conversation across generations about the impact of a meaningful venture capital allocation can help address all three questions in an integrated manner.
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) margins.
No. But, the game has changed and to be successful, investors should adopt a new commitment strategy.
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.