Red Rocks Capital
Red Rocks Capital Global Listed Private Equity (GLPE) Index Sees Dip in Third Quarter Index Performance
DECLINES IN NORTH AMERICAN PRIVATE EQUITY AND FRENCH EQUITY MARKETS IMPACT INDEX
October 15, 2014
Golden, CO -- (BUSINESS WIRE) -- Red Rocks Capital, an asset management firm specializing in listed private equity securities, announced today the performance of its Global Listed Private Equity (GLPE) Index for Q3 2014.
*Past performance does not guarantee future results.
Bloomberg data from 9/30/2009 - 9/30/2014
OCTOBER 2014 PRIVATE EQUITY PERSPECTIVES
ALTERNATIVES REALITY: 5 YEAR CUMULATIVE RETURNS OF ALTERNATIVE INDICES
Global Listed Private Equity underperformed the S&P 500 and other indices in Q3. Euro currency weakness and the strengthening US dollar were a drag on performance as approximately 60% of GLPE constituents trade on foreign exchanges. This trend could continue if rising rates and an improving US economy continue to drive US currency values higher. Geopolitical risk also appears to be affecting global markets as higher risk market segments, like listed private equity, have sold off slightly more aggressively than traditional market indices.
GLOBAL LISTED PRIVATE EQUITY (GLPE) INDEX CONTINUES TO PROVIDE PERFORMANCE COMPARABLE WITH TRADITIONAL PRIVATE EQUITY BENCHMARK
The Cambridge index is a widely followed private equity benchmark and is an end-to-end calculation based on data compiled from 1,125 U.S. private equity funds and liquidated partnerships, formed between 1986 and 2013.
Past performance is no guarantee of future results. One cannot invest directly in an index.
FA Magazine - Private Equity’s Next Frontier: DC Plans
Private equity isn’t just for institutional and accredited individual investors anymore. To say it’s becoming democratized might be a little over the top, but it has become increasingly accessible to retail investors in recent years and will become even more so in coming years, said a panel of industry players on Thursday at the Fifth Annual Innovative Alternative Investment Strategies Conference in Denver.
“There are ’40 Act funds such as ourselves coming into a space that’s growing,” said Mark Sunderhuse, co-founder, managing director, and co-portfolio manager at Red Rocks Capital. “People want these types of funds for the beta exposure. I think we’re just at the front end of this trend.”
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FA MAGAZINE - PRIVATE EQUITY’S NEXT FRONTIER: DC PLANS
The information presented is for illustrative and educational purposes only. You should not assume that an investment in the securities mentioned was or would be profitable in the future. This information is not a recommendation to buy or sell. For private equity companies mentioned in this article, as of July 31, 2014: Blackstone Group LP (BX), The Carlyle Group (CG), KKR & Co. LP (KKR), Pantheon International Participations (PIN LN) - Red Rocks Capital holds positions.
Private Equity Continues Five-Year Run of Outperformance
GLPE INDEX CONTINUES TO RISE ON RECORD DEAL ACTIVITY AND OUTLOOK FOR PRIVATE EQUITY FIRMS
July 15, 2014
Golden, CO – (BUSINESS WIRE) Red Rocks Capital, an asset management firm specializing in listed private equity (PE) investing, announced today that its Red Rocks Capital Global Listed Private Equity (GLPE) Index returned 21.31% per year vs. 18.82% per year for the S&P 500, for the five years ending June 30, 2014.
SEPTEMBER 2014 PRIVATE EQUITY PERSPECTIVES
(To download a pdf file of this document, click here.)
PRIVATE COMPANIES INCREASE REVENUE FASTER THAN PUBLIC COUNTERPARTS
Since the recession ended in June 2009, some of the largest private companies in the U.S. have increased their revenue faster than their public company counterparts, according to a report from financial information provider Sageworks Inc. Sageworks analyzed the annual sales growth and net profit margins of about 265 private companies during five consecutive 12-month periods through August 2014, using financial statements provided by accounting firms, banks, and credit unions. The analysis focused on companies with annual sales of more than $500 million. Sageworks also analyzed the financial results of some 2,100 public companies for the same five 12-month periods, using public disclosures by those companies. With the exception of one period, private companies tracked by Sageworks posted higher sales growth than their public company counterparts. For all five 12-month periods, private companies also reported higher net profit margins than public companies.
SALES GROWTH OF PRIVATE VS. PUBLIC COMPANIES
*Past performance is not indicative of future results
Much of this turnaround for private companies may be attributed to nimbleness and focus. Although public companies were more stable during the recession, private companies have since operated without short-term shareholder scrutiny, enabling them to focus on longer term revenue enhancement and growth initiatives.