The privateMetrics database relies on several sources for transaction data and asset-level financial information. These include:

• Transaction Data Sources:

• • PitchBook: Used for transaction data.
  • Capital IQ: Used for transaction data.
  • FactSet: Used for transaction data.
  • Fund manager annual reports: Used for entry and exit values.
  • Publicly available data:.
  • News sources: Used for sourcing transaction information.

• Underlying Asset-Level Financial Statements and Balance Sheets:

• • Orbis: A source for company information.
  • PitchBook: A source for company information.
  • Annual company accounts: Used for financial data.
  • Private company filings: Data from filings with regulators, tax authorities and other government agencies.
  • Primary data vendors: Vendors that obtain data directly from private companies.

The data from these sources undergoes rigorous quality checks, standardization, and review before being added to the database. The financial data is often annual, and is inter/extrapolated to produce monthly values for the asset pricing model. To ensure that the companies included in the database are representative of those in which private equity firms typically invest, the database is filtered to resemble the universe of companies regularly observed in private market transactions. The criteria used to select companies in the private asset universe include excluding very small companies with less than $1 million in revenue.

It is important to note that Scientific Infra & Private Assets (SIPA) does not provide the raw data on observed transactions, as this data is sourced through multiple third-party sources and SIPA does not possess redistribution rights. Instead, SIPA’s valuation approach uses these transactions to estimate shadow prices of the entire private equity universe. SIPA employs a factor model that leverages actual equity transactions in private companies to estimate valuations. The data is not trained using multiples directly, since the financials can be biased. Rather, SIPA uses the price of the company in the transaction (dollar value) and derives the multiples using its audited financial statements. The criteria for a transaction to be included is that it must be a purely private deal between two non-state entities for a 100% equity acquisition. IPOs are not considered.