Monday, December 15, 2014

Private Equity Navigator: Private Equity Analysis from Pevara & INSEAD’s Global Private Equity Initiative

PRAHL Michael, PODDAR Siddarth, ZEISBERGER Claudia
Read the report
INSEAD (2014) 9 p.
quarterly publication in conjunction with PEVARA, a unique data set based on deal data from institutional investors.

In Q3 2014, we have seen a continuation of the long-term trend of quarterly realisations significantly outpacing capital calls. The difference between calls and distributions is particularly pronounced in North America (page 2). Compared to diversified public equity indices, private equity has performed strongly (as measured by MIRR) over the long-term (since 2000) as well as over a shorter seven-year horizon (starting in pre-crisis 2007) in each of the three key geographies – Asia, North America and Europe. Post-crisis, over a shorter four-year period (since 2010), public markets have outperformed PE marginally in North America and Europe, while in Asia, PE has fared substantially better (page 3). Following a dip in Q1 2014, private equity performance improved in Q2 2014, producing an uptick in quarterly MIRR (page 4). More than a year after creating our model portfolios, we review the performance and characteristics of our portfolio (page 5). While the performance of our model selection shows the challenge of creating market beating portfolios, we note that our J-curves appear to have reached their inflexion points, indicating a maturing of the portfolio.