The 2020 Under the Microscope analysis highlights US PE industry trends leading into the COVID-19 crisis. The analyses indicate that 2019 was in many ways a continuation of the cycle of elevated acquisition and leverage multiples, with PE-backed companies showing sustained revenue and EBITDA growth.
With few exceptions heading into the COVID-19 crisis, the developed and emerging markets PE and VC indexes have handily outperformed their public market counterparts across time.
While US-China tensions began to slowly de-escalate in the the first half of FY 2020, the arrival of the COVID-19 pandemic in the second half upended the investment landscape. Gold and US Treasuries were the big winners as investors rushed into safe havens, while central banks cut rates and expanded QE programs. Equities have mounted a remarkable comeback, while real assets generally remain quite depressed. This chart book presents returns and other market metrics for fiscal year 2020.
For calendar year 2019, US private equity and venture capital produced high double-digit returns, as indicated by the Cambridge Associates LLC benchmark indexes.
Yes, and they have been for some time. Progress has been slow, but current market and regulatory conditions could enable a breakthrough. The impact will be felt primarily in the upper registers of the private equity arena. I’m viewing Vanguard’s recent private equity–related announcement as the first of a two-step process. The first step is…
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.