Measuring and Tracking the Alpha of Private Market Funds

In this webinar, we will explore the limitations of widely used approaches:

• Peer Benchmarking: While top-quartile returns are a common goal, poor fund performance data reporting (fewer than 20% of funds contribute cash flow and NAV data) results in datasets that lack granularity and robustness.
• Public Market Equivalent (PME): Typical PME calculations are inadequate for assessing private equity performance as they merely translate public market returns to private cash flows, failing to account for the unique risk-return profiles of private investments.

A Better Solution: Private Market Equivalent
We propose a Private Market Equivalent approach, leveraging privateMetrics indices to capture the bottom-up performance of private markets. By combining this with the Direct Alpha (DA) method, privateMetrics and infraMetrics benchmarks allow for a more objective and precise assessment of fund performance.

In this session, you will learn how to:

• Measure a fund’s market risk (beta) using representative private market indices.
• Break down outperformance into allocation and selection decisions.
• Use benchmarks that reflect the true dynamics of private markets for informed fund selection and monitoring.

Join us for this insightful webinar and discover how to overcome the limitations of traditional methods with innovative, data-driven approaches to private market analysis.

Register now to secure your spot, using a Zoom link  here.