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Our latest white paper examines the pitfalls of benchmarking private asset funds, reviewing four different methods: peer grouping performance metrics, fund manager indices, public market equivalents (PMEs) and private market equivalent (PtME).
We find that benchmarking private funds against a robust and representative private market index allows investors to determine the proportion of a fund's returns that comes from market returns, the alpha of the fund, and its drivers. Measuring alpha enables investors to pick managers that have genuinely created value over the market, and observing manager alpha over time allows them to pick managers that are the most likely to consistently create value with their next fund.
Based on these observations, we will shortly be launching the highly anticipated 2025 Global Private Market Fund & Manager Rankings, our inaugural list of private market funds and managers in private equity buyouts and private infrastructure, which analyses performance across vintage years, strategies and geographies to see how funds compare over time and across different investment approaches.
We are delighted to invite you to attend one of our two exclusive webinar sessions on 3 April, 2025 to explore the key findings of this ground-breaking analysis and discuss data-driven insights on performance persistence, separating alpha from market return, and assessing risk-adjusted returns in private equity and infrastructure funds.
On this occasion, we will be examining whether top-performing managers consistently maintain their competitive edge or if success is largely driven by taking on market risk, exploring the limitations of traditional benchmarking methods and highlighting why Private Market Equivalents (PtME) offer a more accurate and nuanced view of a manager's skill, and discussing the implications for Limited Partners (LPs) and General Partners (GPs), offering valuable perspectives on how investors can refine their manager selection process and how GPs can more effectively position their performance credibly.
We look forward to seeing you there!
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