Public Market Equivalents

VCs tend to mark their portfolio holdings based on comparable public stocks, which saw a revival in the latter half of 2023.

Comparing the returns of different strategies is difficult enough, given the typical disparities in approach. Assessing private equity’s performance relative to that of public markets is even more challenging...

The key value-adding proposition of private equity fund managers is that they offer more stable, market-beating, safer returns across longer timelines that of course lead to relative illiquidity. And thus far, PE managers have made good on that value proposition.

Our 2015 Annual VC Liquidity Report, developed in partnership with Nasdaq, highlights an increase of 33% in the number of secondary liquidityprograms on the Nasdaq Private Market, as well as an 8% increase in overall transaction volume from what was observed in 2014.

Numerous news sourceshave reported onCalPERS recently announced plans to reduce the number of its private equity (PE) manager relationships by about two-thirds from its current 389 to about 120 in the future. Here we see how this could affect the PE industry.

Over the last 13 years, PE funds have generated a compound annual growth rate (CAGR) of 8.9%, compared to a CAGR of 2.8% for the Russell 3000.

Here is an introduction to PME metrics, which benchmark the performance of a fund (or group of funds) against an indexed alternative investment.