Red Rocks Capital

RED ROCKS CAPITAL GLPE INDEX PROVIDES LONG-TERM PERFORMANCE COMPARABLE WITH TRADITIONAL PRIVATE EQUITY BENCHMARK

GOLDEN, CO --(Business Wire)-- Red Rocks Capital, an asset management firm specializing in listed private equity securities, announced today that the performance of its Global Listed Private Equity (GLPE) continues to provide long-term performance comparable with the Cambridge Associates Global Buyout & Growth Equity Index®.

The Cambridge Associates Global Buyout & Growth Equity Index® is a widely followed private equity benchmark and is an end-to-end calculation based on data compiled from 1,728 global (U.S. & ex U.S.) buyout and growth equity funds including fully liquidated partnerships, formed between 1986 and 2014. 

Sources: Bloomberg, Cambridge Associates, Red Rocks Capital.
Past performance is no guarantee of future results.  One cannot invest directly in an index.

 

NOVEMBER 2014 PRIVATE EQUITY PERSPECTIVES

(To download a pdf file of this document, click here.)

GLOBAL BUYOUT & GROWTH EQUITY FUND INDEX PERFORMANCE – PUBLIC MARKET EQUIVALENT COMPARISONS

Private Equity performance measurements typically use internal rate of return (IRR), so comparing private equity to traditional asset classes that use time-weighted returns may not be an “apples to apples” comparison, as the timing of cash flows in an IRR calculation can alter performance. Public Market Equivalent (PME) is a method to provide a more comparable measure for time-weighted asset classes and private equity.   PME simulates cash flows and investment timing similar to a private equity fund, enabling a more comparable analysis.

Below is a comparison of how Global Private Equity has performed versus S&P 500 and MSCI EAFE Public Market Equivalent (PME) calculations.  Although equities have outperformed during the bull market of the past 5+ years, private equity has outperformed over the longer term of 10-, 15-, 20- and 25-year periods.

 

As of June 30, 2014

Sources: Cambridge Associates LLC, Frank Russell Company, MSCI Inc., Standard & Poor's and Thomson Reuters Datastream

*The index is an end-to-end calculation based on data compiled from 1,728 global (U.S. & ex U.S.) buyout and growth equity funds including fully liquidated partnerships, formed between 1986 and 2014.
*Pooled end-to-end return, net of fees, expenses, and carried interest.
**Cambridge Associates Modified Public Market Equivalent (mPME) replicates private investment performance under public market conditions. The public index’s shares are purchased and sold according to the private fund cash flow schedule, with distributions calculated in the same proportion as the private fund, and mPME NAV is a function of mPME cash flows and public index returns.
MSCI EAFE Index is a stock market index that is designed to measure the equity market performance of developed markets outside of the U.S. & Canada.

OCTOBER 2014 PRIVATE EQUITY PERSPECTIVES

(To download a pdf file of this document, click here.)

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.

 

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

Download GLPE Factsheet

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