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Benchmarking Blues: Who has the Right Benchmark for Private Equities?
Join us on 27 February, 2025 at 9.30am GMT / 5.30pm SGT for our latest “Blitzinar”, a new event format bringing you key insights in 15 minutes + 15 minutes for direct Q&A, where we will discuss the following key takeaways from our latest report entitled “Who Has The Right Benchmark? Is Canadian Pension Fund Private Equities Benchmarking Misleading?”, which shows that recent private equities returns are well below the long-term return expectations of investors in private equities:
Institutional investors’ private equity returns are often benchmarked to public market proxies, which have outperformed, resulting in perceptions of “underperformance” for private equity investors.
Current benchmarks do not properly reflect the performance and risks of private equities, leading to misjudgments of alpha generation and skewing assessments of fund and portfolio performance.
Despite institutional LPs targeting 15-20% gross IRRs, only high alpha funds are expected to meet these targets due to recent private equity market performance.