A
benchmark
to
match
your
strategy
using the right benchmark matters
Benchmarks play an essential role in the investment process at all stages from asset allocation to performance monitoring and risk reporting management. Benchmarking errors or biases can lead to loss of performance, excessive risk taking, costly rebalancing and compound the denominator effect. Investors in private markets, be the GPs, LPs or direct investors require benchmarks that are both representative and robust for a multitude of uses cases.
USe PRIVATEMETRICS TO BUILD THE BENCHMARK YOU NEED
privateMetrics market indices capture of the dynamics of the broad market and can be used as asset allocation or global strategy benchmarks. They include the private2000® and the infra300® indices.
privateMetrics also includes thematic indices that focus on specific segments of private markets such as sector and geographies but also business or customer model, and style factors like size or revenue growth. Such indices can be combined and used to create a new benchmark that is representative of an investors choice of strategy or exposure to private markets.
Thanks to a very large database, privateMetrics also allows building bottom-up custom benchmarks: users can pick a reference universe (asset class and geography), select segment weights using the PECCS or TICCS taxonomies and a compute a completely unique benchmark.
privateMetrics market, thematic and custom benchmarks can be built by investors on-the-fly in full transparency with a simple API call in Excel or Python and are updated monthly. They are representative of the strategy and style chosen by the investor and robust because they rely on a large dataset that has proven track record to represent private asset classes, be it private equities, private infrastructure or infrastructure debt.
BUILD A PRIVATE MARKET BENCHMARK IN Three SIMPLE STEPS
Select a Universe
Build a benchmark starting from the privateMetrics Broad Market Universe (BMU) or the more restrictive Private Equity-Backed Universe of companies. Alternatively select the infraMetrics universe of private infrastructure companies.
Define Segment and Style Weights
Define the benchmark exposure to different segments of the PECCS or TICCS classifications of private assets and any style tilts. For example: Mid-Size Contracted Power Infrastructure or High-Profit Subscription-based US Companies.
Let the privateMetrics API do the heavy lifting.
Using a platform of your choice (MSExcel, Python or R) access the privateMetrics API and retrieve the resulting benchmarks and dozens of associated analytics.
Want to know more?
Contact a member of our team.privateMetrics® insights
the EDHEC Infrastructure & Private Assets Research Institute
