PitchBook Unveils New Benchmark Product Providing Unprecedented Transparency into Private Fund Performance
December 14, 2017
PitchBook Benchmarks Leverages Performance Data from Nearly 10,000 Funds to Provide 45 Unique Benchmark Groupings; Solution Helps Institutional Investment Community Accurately Measure Performance & Refine Allocation Decisions
SEATTLE, NEW YORK, SAN FRANCISCO, LONDON – December 14, 2017 –PitchBook, the premier data provider for the private and public markets, today unveiled its stand-alone performance measurement product, PitchBook Benchmarks. Leveraging a differentiated data collection process, PitchBook Benchmarks can provide unparalleled transparency into the underlying fund performance metrics and returns data used to construct each individual benchmark. This enhanced level of granularity is impossible to achieve with traditional benchmarking products, which report data on an aggregate basis due to contractual restrictions. With PitchBook Benchmarks, Limited Partners (LPs) are empowered to make more informed asset allocation decisions, while General Partners (GPs) can more accurately gauge and report the performance of their past and active funds. In addition, PitchBook Benchmarks are delivered in both PDF and Excel formats to provide flexible functionality and a streamlined workflow.
The PitchBook Benchmarks PDF and Excel data packs are available for download here.
In recent years, LPs have enjoyed an unprecedented amount of capital distributed back to them from both private equity and venture capital managers. Subsequently, much of that capital has been recycled back into the asset class with GPs across both strategies experiencing near-record levels of fundraising activity. As the private capital markets have attracted ample interest, the number of active managers across private equity and venture has roughly doubled since 2006. Given this growth, LPs have an unprecedented need for rigorous and transparent performance benchmark products to guide capital allocation decisions amongst the plethora of available managers and strategies. Furthermore, GPs need the ability to access that same rigor and transparency to gauge and assess their performance against the growing number of firms they compete with for LP capital.
PitchBook Benchmarks were developed to address the need for deeper transparency as well as enhanced functionality within the tools clients use to measure performance. Traditional benchmark products report data on an aggregated basis due to contractual restrictions that limit their ability to showcase fund-level details. PitchBook’s unique data collection process is free of any such restrictions and thus, able to provide the underlying fund details and returns data that constitute each featured benchmark. Beginning with the nearly 10,000 fund vehicles PitchBook currently has returns information for, PitchBook analysts employ a rigorous five-step research process to qualify the LP reports used to calculate each individual benchmark. This process allows PitchBook to provide the most objective, reliable and consistently accurate performance data. Additionally, PitchBook developed its benchmarks with utility top of mind. Users are able to access PitchBook Benchmarks in both PDF and Excel formats, enabling the easy re-construction and use of data in any other performance measurement models.
“There are more managers investing across private equity and venture today than we’ve really ever seen. So inherently, LPs are faced with a significant challenge in terms of finding and selecting outperforming managers in a crowded market,” said Adley Bowden, VP of research and analysis at PitchBook. “Our benchmarks offer a two-fold competitive advantage for both LPs and GPs – not only can our customers access the underlying funds and returns data that constitute our high-level benchmarks, but also we’ve placed an emphasis on delivering that data in the most flexible and easy-to-use fashion.”
For more information about PitchBook Benchmarks, click here.
PitchBook is a financial data and software company that provides transparency into the capital markets to help professionals discover and execute opportunities with confidence and efficiency. PitchBook collects and analyzes detailed data on the entire venture capital, private equity and M&A landscape—including public and private companies, investors, funds, investments, exits and people. The company’s data and analysis are available through the PitchBook Platform, industry news and in-depth reports. Founded in 2007, PitchBook has offices in Seattle, San Francisco, New York and London and serves more than 13,000 professionals around the world. In 2016, Morningstar acquired PitchBook, which now operates as an independent subsidiary.
Bailey Fox and Nick McDonald