CONSULTANTS
&
DATA
PROVIDERS
Investment consultants and data providers play a crucial role in advising pension plans and insurers on strategy, asset allocation, and risk management, and their effectiveness hinges on access to robust and representative data sources. privateMetrics provides access to high-quality data ensuring that recommendations are grounded in accurate, up-to-date, and comprehensive insights, enabling advisors to identify market trends, assess risk-adjusted returns, and uncover opportunities for diversification.
privateMetrics® is trusted by some of the largest consultants and analytics providers in the world
Private Market data for investment consultants
Supporting advisory services with robust and representative dataBenchmarking
Consultants play a key role in benchmark selection and design for many asset owners. They need access to representative data that describe the risk and returns of private asset classes and strategies . Benchmarks build from data contributed by managers invariably fail to be representative and does a poor job at describing private markets. Public indices are not better at representing the risk-return profile of private equities or infrastructure. privateMetrics is built at the asset level from a wide universe of 1.2 million private firms and thanks to the PECCS taxonomy allows building hundreds of representative benchmarks.
Manager Selection
Consultants help limited partners to select the best fund managers but peer grouping by IRR and TVPI suffers from significant limitations which can weaken the quality of the due diligence. Using privateMetrics market indices or custom benchmarks, consultants can calculate the true alpha of a fund and the share of the fund return driven by the market or by the manager asset allocation choices. Thanks to their unique vantage point across multiple LPs and GPs, they can also rank private equity and private infrastructure funds making an apple-to-apple comparison by using the right private market index.
Asset Allocation
Asset allocation is a key part of the services offered by consultants and it is the first order question for any CIO: Allocating to private assets requires robust measures of risk, correlations and performance for individual asset classes. privateMetrics indices are computed in such a way that all these metrics are available and usable in a quantitative portfolio management context. Avoiding smoothed returns and unrealistic correlations also allows minimising the impact of the denominator effect. Allocations built with representative market data lead to better investment outcomes at the portfolio level.
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Contact a member of our team.privateMetrics® insights
the EDHEC Infrastructure & Private Assets Research Institute
